nep-pbe New Economics Papers
on Public Economics
Issue of 2006‒09‒30
thirty-one papers chosen by
Peren Arin
Massey University

  1. The Welfare Enhancing Effects of a Selfish Government in the Presence of Uninsurable, Idiosyncratic Risk By R. Anton Braun; Harald Uhlig
  2. Shadow Economies and Corruption All Over the World: What Do We Really Know? By Friedrich Schneider
  3. Property taxation as incentive for cost control:Empirical evidence for utility services in Norway By Lars-Erik Borge; Jørn Rattsø
  4. Comparing Average and Marginal Tax Rates Under the FairTax and the Current System of Federal Taxation By Laurence J. Kotlikoff; David Rapson
  5. Real appreciation as an automatic channel for redistribution of increased government non-tax revenue By Erling Holmøy
  6. A Comment on The Role of Prices for Excludable Public Goods By Gilbert E. Metcalf; Jongsang Park
  7. The Achilles Heel of the Dual Income Tax. The Norwegian Case By Annette Alstadsæter
  8. VAT: Is it Suitable for the Caribbean Community? By Peters, Amos C; Bristol, Marlon A
  9. Fiscal Policies, External Deficits, and Budget Deficits By Michel Normandin
  10. The Effects of the Minimum Wage in an Economy with Tax Evasion By Mirco, Tonin
  11. A welfare state funded by nature and OPEC. A guided tour on Norway's path from an exceptionally impressive to an exceptionally strained fiscal position By Kim Massey Heide, Erling Holmøy, Ingeborg Foldøy Solli and Birger Strøm
  12. Rawlsian Pricing of Access to Public Facilities: A Unidimensional Illustration By DREZE, Jacques; LE BRETON, Michel; WEBER, Shlomo
  13. The Determinants of U. S. State Economic Growth: A Less Extreme Bounds Analysis By W. Robert Reed
  14. Taxation and the international strategy of Japanese multinational enterprises. By Céline Azémar; Gregory Corcos; Andrew Delios
  15. Unemployment and Clientelism: The Piqueteros of Argentina By Ponce, Aldo Fernando
  16. Lobbying, Corruption and Political Influence By Nauro F. Campos; Francesco Giovannoni
  17. Secession-Proofness in Large Heterogeneous Societies By DREZE, Jacques; LE BRETON, Michel; WEBER, Shlomo
  18. The Social Security Earnings Test Removal. Money Saved or Money Spent by the Trust Fund? By Giovanni Mastrobuoni
  19. Public-Private Sector Partnerships in Developing Countries: Prospects and Drawbacks By Argentino Pessoa
  20. Have pro-poor health policies improved the targeting of spending and the effective delivery of health care in South Africa? By Ronelle Burger; Christelle Swanepoel
  21. Constitutions and the resource curse By Jørgen Juel Andersen; Silje Aslaksen
  22. Pension fund efficiency: the impact of scale, governance and plan design By Jacob A. Bikker; Jan de Dreu
  23. Budget Processes: Theory and Experimental Evidence By Karl-Martin Ehrhart; Roy Gardner; Juergen von Hagen; Claudia Keser
  24. Leading the Party: Coordination, Direction, and Communication By Torun Dewan; David P. Myatt
  25. Medicaid Crowd-Out of Private Long-Term Care Insurance Demand: Evidence from the Health and Retirement Survey By Jeffrey R. Brown; Norma B. Coe; Amy Finkelstein
  26. Do State Expenditures on Tobacco Control Programs Decrease Use of Tobacco Products Among College Students? By Christina Czart Ciecierski; Pinka Chatterji; Frank J. Chaloupka; Henry Wechsler
  27. The Effectiveness of Cigarette Regulations in Reducing Cases of Sudden Infant Death Syndrome By Sara Markowitz
  28. Career progression and formal versus on-the-job training By Jerome Adda; Christian Dustmann; Costas Meghir; Jean-Marc Robin
  29. Understanding the Perpetration of Employee Computer Crime in the Organisational Context By Willison , Robert
  30. Switching to a Poor Business Activity: Optimal Capital Structure, Agency Costs and Convenant Rules By DÉCAMPS, Jean-Paul; DJEMBISSI, Bertrand
  31. Open Source Software Acquisition By Holck,, Jesper; Pedersen, Mogens Kühn; Larsen, Michael Holm

  1. By: R. Anton Braun; Harald Uhlig
    Abstract: This paper poses the following question: Is it possible to improve welfare by increasing taxes and throwing away the revenues? This paper demonstrates that the answer to this question is “yes.” We show that there may be welfare gains from taxing capital income even when the additional capital income tax revenues are wasted or consumed by a selfish government. Previous literature has assumed that government expenditures are exogenous or productive, or allowed for redistribution of tax revenue either via lump-sum transfers, unemployment compensation or other redistributive schemes. In our model a selfish government taxes capital above a given threshold and then consumes the proceeds. This raises the before-tax real return on capital and and thereby enhances the ability of agents to self-insure when they are long-term unemployed and have low savings. Since all agents have positive probability of finding themselves in that state there are cases where all agents prefer a selfish government to no government at all.
    Keywords: capital income tax, selfish government, welfare improvement, redistribution
    JEL: H20 H21 H23 D31 D33 E21 E62
    Date: 2006–09
  2. By: Friedrich Schneider (Johannes Kepler University of Linz and IZA Bonn)
    Abstract: Estimations of the size and development of the shadow economy for 145 countries, including developing, transition and highly developed OECD economies over the period 1999 to 2003 are presented. The average size of the shadow economy (as a percent of “official” GDP) in 2002/03 in 96 developing countries is 38.7%, in 25 transition countries 40.1%, in 21 OECD countries 16.3% and in 3 Communist countries 22.3%. An increased burden of taxation and social security contributions, combined with a labor market regulation are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated.
    Keywords: shadow economy of 145 countries, tax burden, tax morale, quality of state institutions, regulation, DYMIMIC and other estimation methods
    JEL: O17 O5 D78 H2 H11 H26
    Date: 2006–09
  3. By: Lars-Erik Borge (Department of Economics, Norwegian University of Science and Technology); Jørn Rattsø (Department of Economics, Norwegian University of Science and Technology)
    Abstract: Recent theoretical research suggests that property taxation has incentive effects that can help control cost problems in the public sector. The institutional setting in Norway allows this first empirical investigation of the incentive effect of property taxation, since we can separate between local governments with and without property tax. The raw data of the variation in the unit cost level for utilities show that local governments with property tax have about 20% lower unit cost. Using both linear regression and propensity score matching, we are not able to wash out the difference in unit costs. Our interpretation is that having a visible and controversial local tax related to property stimulates voter interest in local government activities and thereby may help cost control. The incentive effect is of interest for the design of fiscal federalism.
    Keywords: Property tax; incentive effects; public sector costs; matching
    JEL: H71 H72
    Date: 2006–09–19
  4. By: Laurence J. Kotlikoff; David Rapson
    Abstract: Abstract Building on Gokhale, Kotlikoff, and Sluchynsky's (2002) study of Americans' incentives to work full or part time, this paper uses ESPlanner, a life-cycle financial planning program, in conjunction with detailed modeling of transfer programs to determine a) total marginal net tax rates on current labor supply, b) total net marginal tax rates on life-cycle labor supply, c) total net marginal tax rates on saving, and d) the tax-arbitrage opportunities available from contributing to retirement accounts. In seeking to provide the most comprehensive analysis to date of fiscal incentives, the paper incorporates federal and state personal income taxes, the FICA payroll tax, federal and state corporate income taxes, federal and state sales and excise taxes, Social Security benefits, Medicare benefits, Medicaid benefits, Foods Stamps, welfare (TAFCD) benefits, and other transfer program benefits. The paper offers four main takeaways. First, thanks to the incredible complexity of the U.S. fiscal system, it's impossible for anyone to understand her incentive to work, save, or contribute to retirement accounts absent highly advanced computer technology and software. Second, the U.S. fiscal system provides most households with very strong reasons to limit their labor supply and saving. Third, the system offers very high-income young and middle aged households as well as most older households tremendous opportunities to arbitrage the tax system by contributing to retirement accounts. Fourth, the patterns by age and income of marginal net tax rates on earnings, marginal net tax rates on saving, and tax-arbitrage opportunities can be summarized with one word -- bizarre.
    JEL: H21 H24
    Date: 2006–09
  5. By: Erling Holmøy (Statistics Norway)
    Abstract: The paper analyses how equilibrium adjustments of the wage rate affect the scope for tax rate reductions when the government experiences an exogenous increase in non-tax revenues. It shows within a stylized model that increased revenue in the form of a tradable will increase the wage rate, which diminishes the scope for tax rate reduction, provided that the initial wage dependent government net expenditures are positive. In this case the wage rate adjustment represents an automatic channel for redistributing increased non-tax government revenues. When the revenue increases in the form a non-tradable, the wage rate adjustment reinforces the scope for tax rate reduction. Simulations on a CGE model of the Norwegian economy confirm the theoretical results, and demonstrate that the fiscal wage effect can be strikingly large.
    Keywords: Tax incidence; fiscal policy; general equilibrium effects
    JEL: D58 H22 H61
    Date: 2006–09
  6. By: Gilbert E. Metcalf; Jongsang Park
    Abstract: Blomquist and Christensen (2005) argue that welfare is initially decreasing in the price of an excludable public good and that the case for a positive price for an excludable public good price is weak. We argue that this result follows from their particular characterization of the public good and that an alternative and equally reasonable characterization overturns their result. Hence the policy case for a positive price on the public good is stronger than Blomquist and Christiansen suggest. We also provide a flexible characterization of public goods that nests a wide variety of public goods models.
    JEL: H21 H41
    Date: 2006–09
  7. By: Annette Alstadsæter (Statistics Norway)
    Abstract: The dual income tax provides the self-employed individual with large incentives to participate in tax minimizing income shifting. The present paper analyses the income shifting incentives under the Norwegian split model in the presence of technology risk, and it concludes that the widely held corporation serves as a tax shelter for high-income self-employed individuals. In addition, real capital investments with a low risk profile are means to shift income from the labor income tax base to the capital income tax base for the high-income self-employed.
    Keywords: Dual income tax; tax avoidance; risky investments; choice of organizational form
    JEL: H24 H25 H32
    Date: 2006–09
  8. By: Peters, Amos C; Bristol, Marlon A
    Abstract: The Caribbean Community is in transition, moving toward a liberalized trade environment with low tariffs. Tax reform is at the forefront of the policy response since traditional sources of tax revenue such as import duties are on the decline. This paper evaluates the suitability of the VAT to countries of the Caribbean Community. We examine theoretical arguments, practical experiences of the Caribbean with the VAT and the economic and tax characteristics of the Caribbean. We conclude by supporting VAT implementation in the Caribbean Community. This paper also reflects a comprehensive survey of tax reform efforts in the Caribbean.
    Keywords: Value Added Tax; Caribbean Community
    JEL: H21 H27 H20 H2
    Date: 2006–09–19
  9. By: Michel Normandin
    Abstract: This paper studies the effects of fiscal policies on external and budget deficits. From a tractable small open-economy, overlapping-generation model, the effects are measured by the responses of the external deficit to an increase in the budget deficit due to a tax-cut. The responses are positively affected by the birth rate and the degree of persistence of the budget deficit. Empirical results for the G7 countries over the post-1975 period reveal that the values of birth rate are small for all, but one, countries; but the responses of external and budget deficits are substantial and persistent for most countries. In particular, the fiscal policy has the most important effects on the external deficits for Canada, Japan, and the United States; somewhat smaller impacts for France, Germany, and the United Kingdom; and negligible effects for Italy.
    Keywords: Agents' Superior Information, Birth Rate, Impact and Dynamic Responses, G7 Countries, Orthogonality Restrictions
    JEL: E62 F32 F41
    Date: 2006
  10. By: Mirco, Tonin (Institute for International Economic Studies, Stockholm University)
    Abstract: A model of the labor market is built where imperfect detection in case of auditing induces underreporting of earnings. The introduction of the minimum wage makes some workers increase compliance, boosting fiscal revenues. A spike at the minimum wage level appears in the distribution of earnings. The model predicts a positive correlation between the size of the spike at the minimum wage level and the size of the informal economy. Empirical evidence supporting this prediction is presented.
    Keywords: minimum wage; tax evasion
    JEL: H26 H32 J38
    Date: 2006–09–22
  11. By: Kim Massey Heide, Erling Holmøy, Ingeborg Foldøy Solli and Birger Strøm (Statistics Norway)
    Abstract: Large petroleum revenues make Norway an enviable fiscal loner. The fiscal policy rule adopted from 2001 transforms petroleum wealth into foreign assets, and only the real return on the financial fund should be spent annually. Despite this ambitious saving of the petroleum wealth, we find it unlikely that present tax rates and welfare schemes are sustainable in a long run perspective. Rather, the results from combining detailed models of demography and government expenditures with a detailed CGE model, suggest that Norway is exceptional also with respect to strong growth in government expenditures. In our baseline scenario the payroll tax rate must be increased continuously when ageing sets in after 2020, passing twice the present level about 2045. This is required even if the pension fund reaches 1.4 times GDP, commanding an unprecedented degree of fiscal discipline.
    Keywords: Population ageing; Fiscal sustainability; Computable general equilibrium model; Dynamic micro simulation
    JEL: H30 H55 H62
    Date: 2006–07
  12. By: DREZE, Jacques; LE BRETON, Michel; WEBER, Shlomo
    JEL: D70 H20 H73
    Date: 2006–03
  13. By: W. Robert Reed (University of Canterbury)
    Abstract: This study investigates U.S. state economic growth from 1970-1999. I innovate on previous studies by developing a new approach for addressing "model uncertainty" issues associated with estimating growth equations. My approach borrows from the "extreme bounds analysis" (EBA) approach of Leamer (1985), while also addressing concerns raised by Granger and Uhlig (1990), Salai-Martin (1997) and others that not all specifications are equally likely to be true. I then apply this approach to identify "robust" determinants of state economic growth. My analysis confirms the importance of productivity characteristics of the labor force and industrial composition of a state's economy. I also find that policy variables such as (i) size and structure of government and (ii) taxation are "robust" and economically important determinants of state economic growth.
    Keywords: Growth, U. S. State Economic Growth, State Fiscal Policy, Economic Development, Taxes, Model Selection, SIC, AIC, AICc, Extreme Bounds Analysis
    JEL: H10 H20 H30 H70 R11 R58 C51
    Date: 2006–02–02
  14. By: Céline Azémar; Gregory Corcos; Andrew Delios
    Abstract: This paper analyzes the effect of statutory tax rates on the location of Japanese capital in emerging countries. Considering the fact that the difference between Japan and foreign tax rates can engender transfer pricing manipulation to diminish tax liabilities, and that some firms are more able to manipulate transfer pricing, such as wholly-owned ventures and high technology affiliates, we investigate the sensitivity of Japanese capital to foreign tax rates by distinguishing wholly-owned ventures from joint-ventures and high R&D affiliates from low R&D affiliates. Based on country, parent firm and sector characteristics an investment equation is estimated on a sample of 3774 Japanese affiliates in 49 emerging countries. We obtain a greater semi-elasticity between investment and the statutory tax rate for wholly-owned affiliates and R&D intensive parents. We interpret these results as indirect evidence for abusive transfer pricing to be one of the determinants of FDI flows.
    Date: 2006
  15. By: Ponce, Aldo Fernando
    Abstract: This paper sheds light on possible explanations for the success and sustainability of the piqueteros social movement in Argentina, developed from a comparative perspective based on Latin America. I show which institutional arrangements, political actors, and configurations of power contributed to the success of the piqueteros. Applying the basic principles of the rational choice approach, I find that the success of the piqueteros movement was produced by the current political division in the ruling party (the Peronist party), by the over-regulated Argentine labor market, and by the impact of the Argentine economic crisis through the unemployment rates.
    Keywords: Keywords: unemployment; social movements; federalism; institutions; unions; Argentina.
    JEL: H7 H1 J5 H3 H4 H72 H77 H41 Z13 J50
    Date: 2006–09–01
  16. By: Nauro F. Campos (Brunel University, CEPR and IZA Bonn); Francesco Giovannoni (CMPO, University of Bristol)
    Abstract: Conventional wisdom suggests that lobbying is the preferred mean for exerting political influence in rich countries and corruption the preferred one in poor countries. Analyses of their joint effects are understandably rare. This paper provides a theoretical framework that focus on the relationship between lobbying and corruption (that is, it investigates under what conditions they are complements or substitutes). The paper also offers novel econometric evidence on lobbying, corruption and influence using data for about 4000 firms in 25 transition countries. Our results show that (a) lobbying and corruption are substitutes, if anything; (b) firm size, age, ownership, per capita GDP and political stability are important determinants of lobby membership; and (c) lobbying seems to be a much more effective instrument for political influence than corruption, even in poorer, less developed countries.
    Keywords: lobbying, corruption, transition, institutions
    JEL: E23 D72 H26 O17 P16
    Date: 2006–09
  17. By: DREZE, Jacques; LE BRETON, Michel; WEBER, Shlomo
    JEL: D70 H20 H73
    Date: 2006–03
  18. By: Giovanni Mastrobuoni
    Abstract: Beneficiaries of Social Security face restrictions on how much they can earn without incurring the earnings test (ET). In 2000, President Clinton eliminated the ET between age 65 and 70. In this paper I evaluate how this removal impacts the long-term finances of the Trust Fund. I find that starting in 2006 the Social Security Administration is actually saving money and that the removal appears to be Pareto efficient. A removal of the remaining part of the ET is likely to be even less costly and to produce larger increases in labor supply and contributions.
    Keywords: earnings test, social security, claiming, retirement
    JEL: H55 J26
    Date: 2006
  19. By: Argentino Pessoa (Faculdade de Economia do Porto, Universidade do Porto)
    Abstract: Many developing countries are searching positive impacts on the efficiency, equity and quality provision of the public services through increasing competition and active participation of the private sector, considering public-private partnerships (PPPs) as the appropriate instrument to attain such endeavour. Accordingly, PPPs have been used for many and widespread purposes, ranging from the construction of physical infrastructure, to the provision of health and social services, to public administration. But, while the idea of a PPP in general is theoretically appealing, its practical implementation in developing countries is not so easy as theory suggests. Perhaps partly for that reason, a large number of implemented PPPs have left the contractual parties dissatisfied, which may indicate that, either developing country authorities, or investors (or both) may have had too high expectations to what could be attained. Though some contracts have been granted under circumstances that made them susceptible to changes in the political environment, the large majority of the others have also suffered from inflated or unrealistic expectations. So, the need for a legal and regulatory framework, which can guarantee a transparent and credible relationship between the different actors, is critical. Unfortunately many, if not all, regulators in developing countries lack one, or more, qualities required for an effective regulation.
    Keywords: Contracting out, public services, market/government failure, infrastructures, public-private partnership
    JEL: H4 H5 I18 I28 L33
    Date: 2006–09
  20. By: Ronelle Burger (Department of Economics, Stellenbosch University); Christelle Swanepoel (Bureau of Economic Research, Stellenbosch University)
    Abstract: Since 1994 there have been a number of radical changes in the public health care system in South Africa. Budgets have been reallocated, decision making was decentralised, the clinic network was expanded and user fees for primary health care were abolished. The paper examines how these recent changes have affected the incidence of spending and the accessibility and quality of health care. The paper finds that between 1995 and 2003 there have been advances in the pro-poor spending incidence of both clinics and hospitals. The increased share of the health budget allocated to the more pro-poor clinic services has contributed further to the improvement in the targeting of overall health spending. Also, it appears that the elimination of user fees for clinics and the expansion of the clinic network have helped to make health services more affordable and geographically accessible to the poor and were associated with a notable rise in health service utilisation for individuals in the bottom two expenditure quintiles. South Africa’s spending on clinics and hospitals is well targeted and more progressive than other developing country public health systems. Unfortunately, it appears that to a considerable extent this result is driven by perceptions that services offered in public hospitals and clinics are of a low and variable quality. These perceptions seem to be encouraging most of those who can afford to pay more for health services to opt out of the public health system, thereby increasing the pro-poor incidence of public health spending. Complaints by users of public health facilities include long waiting times, staff rudeness and problems with drug availability. Dissatisfaction with health services is significantly higher in the public sector than in the private sector and the gap has expanded slightly over time. It is consequently not surprising that a substantial and increasing share of individuals – also including the very poorest – prefer to consult private providers.
    Keywords: fiscal incidence, South Africa, health
    JEL: H51 I18
    Date: 2006
  21. By: Jørgen Juel Andersen (Department of Economics, Norwegian University of Science and Technology); Silje Aslaksen (Department of Economics, Norwegian University of Science and Technology)
    Abstract: Recent advances in the political economy literature suggests that constitutional arrangements determine a wide range of economic pol icy outcomes. In particular, it is argued that different forms of government (presidential versus parliamentary) induce more or less 'growth promoting' policies. However, effects on long run growth have proved harder to identify. We exploit the fact that natural resources are randomly distributed to identify differences in the long-term performance of economies with different constitutional forms. Existing theory suggests that the presence of vast natural resources should affect growth differently in countries with different constitutional designs. Empirically we find strong support for this hypothesis - constitutions indeed seem to matter for how natural resource abundance affects long run growth. In fact, the form of government matters more than democratic rule. We also find interaction effects of electoral rules (majority versus proportional voting) and resource abundance on growth, although these effects are less clear-cut and less robust.
    Keywords: Growth; Political economy; Constitution; Resource curse; Institutions.
    JEL: E61 F43 O13 P51 Q32
    Date: 2006–04–29
  22. By: Jacob A. Bikker; Jan de Dreu
    Abstract: Administrative and investment costs per participant appear to vary widely across pension funds. These costs are important because they reduce the rate of return on the investments of pension funds and consequently raise the cost of retirement security. This paper examines the impact of determinants of these costs, such as the size, governance, pension plan design and outsourcing decisions, using data on all Dutch pension funds across the 1992-2004 period, including more than 10,000 observations. We find that economies of scale dominate the strong dispersion in both administrative and investment costs across pension funds. Industry-wide pension funds are significantly more efficient than company funds and other funds. The operating costs of pension funds’ defined contribution plans are lower than those of defined benefit plans. Higher shares of pensioners make funds more costly, whereas the reverse is true when relatively many participants are inactive.
    Keywords: Administrative costs; investment costs; economies of scale; pension plan design; governance; defined benefits; defined contribution; outsourcing; reinsurance.
    JEL: D61 G14 G23 H55
    Date: 2006–08
  23. By: Karl-Martin Ehrhart (University of Karlsruhe); Roy Gardner (Indiana University Bloomington); Juergen von Hagen (University of Bonn); Claudia Keser (IBM T.J. Watson Research Center)
    Abstract: This paper studies budget processes, both theoretically and experimentally. We compare the outcomes of bottom-up and top-down budget processes. It is often presumed that a top-down budget process leads to a smaller overall budget than a bottom-up budget process. Ferejohn and Krehbiel (1987) showed theoretically that this need not be the case. We test experimentally the theoretical predictions of their work. The evidence from these experiments lends strong support to their theory, both at the aggregate and the individual subject level.
    Keywords: budget processes, voting equilibrium, experimental economics
    JEL: H61 C92
    Date: 2006–09
  24. By: Torun Dewan; David P. Myatt
    Abstract: Party activists face a coordination problem: a critical mass (a barrier to coordination) must advocate a single policy alternative if the party is to succeed. The need for direction is the degree to which the merits of the alternatives respond to the underlying mood of the party. An individual`s ability to assess the mood is his sense of direction. These factors combine to form an index of both the desirability and the feasibility of leadership: we call this index Michels` Ratio. A sovereign party conference gives way to leadership by an individual or oligarchy if and only if Michels` Ratio is sufficiently high. Leadership enhances the clarity of intra-party communication, but weakens the response of policy choices to the party`s mood.
    Keywords: Leadership, Direction, Coordination, Communication, Oligarchy
    JEL: D7 D8 H1
    Date: 2006
  25. By: Jeffrey R. Brown; Norma B. Coe; Amy Finkelstein
    Abstract: This paper provides empirical evidence of Medicaid crowd out of demand for private long-term care insurance. Using data on the near- and young-elderly in the Health and Retirement Survey, our central estimate suggests that a $10,000 decrease in the level of assets an individual can keep while qualifying for Medicaid would increase private long-term care insurance coverage by 1.1 percentage points. These estimates imply that if every state in the country moved from their current Medicaid asset eligibility requirements to the most stringent Medicaid eligibility requirements allowed by federal law – a change that would decrease average household assets protected by Medicaid by about $25,000 – demand for private long-term care insurance would rise by 2.7 percentage points. While this represents a 30 percent increase in insurance coverage relative to the baseline ownership rate of 9.1 percent, it also indicates that the vast majority of households would still find it unattractive to purchase private insurance. We discuss reasons why, even with extremely stringent eligibility requirements, Medicaid may still exert a large crowd-out effect on demand for private insurance.
    JEL: G22 H51 H53 I18
    Date: 2006–09
  26. By: Christina Czart Ciecierski; Pinka Chatterji; Frank J. Chaloupka; Henry Wechsler
    Abstract: The objective of this paper is to investigate the effects of state tobacco control program expenditures on individual-level tobacco use behaviors among young adults. Data come from the 1993, 1997, 1999 and 2001 waves of the Harvard School of Public Health College Alcohol Study (CAS). Our findings indicate that a higher level of state spending on tobacco control programs is associated with a statistically significant increase in the probability that smokers report at least one attempt to quit smoking in the past year, as well as increases in the number of attempts to quit in the past year among smokers. We also find that higher state expenditures on tobacco control programs are associated with reductions in the prevalence of smokeless tobacco and cigar use among college students. We do not find, however, any statistically significant association between state tobacco control program expenditures and the overall prevalence and intensity of cigarette use among college students, a finding that is at odds with previous research on high school students.
    JEL: I1
    Date: 2006–09
  27. By: Sara Markowitz
    Abstract: Sudden Infant Death Syndrome is a leading cause of mortality among infants and is responsible for thousands of infant deaths every year. Prenatal smoking and postnatal environmental smoke have been identified as strong risk factors for SIDS. Given the link between smoking and SIDS, this paper examines the direct effects of cigarette prices, taxes and clean indoor air laws in explaining changes in the incidence of SIDS over time in the United States. State-level counts of SIDS cases are generated from death certificates for 1973 to 2003. After controlling for some observed and unobserved confounding factors, the results show that higher cigarette prices and taxes are associated with reductions in SIDS cases. Stronger restrictions on smoking in restaurants and child care centers are also effective in reducing SIDS deaths.
    JEL: I0
    Date: 2006–09
  28. By: Jerome Adda (Institute for Fiscal Studies and University College London); Christian Dustmann (Institute for Fiscal Studies and University College London); Costas Meghir (Institute for Fiscal Studies and University College London); Jean-Marc Robin (Institute for Fiscal Studies and EUREQua, University of Paris 1)
    Abstract: We develop a dynamic discrete choice model of training choice, employment and wage growth, allowing for job mobility, in a world where wages depend on firm-worker matches, as well as experience and tenure and jobs take time to locate. We estimate this model on a large administrative panel data set which traces labour market transitions, mobility across firms and wages from the end of statutory schooling. We use the model to evaluate the life-cycle return to apprenticeship training and find that on average the costs outweigh the benefits; however for those who choose to train the returns are positive. We then use our model to consider the long-term lifecycle effects of two reforms: One is the introduction of an Earned Income Tax Credit in Germany, and the other is a reform to Unemployment Insurance. In both reforms we find very significant impacts of the policy on training choices and on the value of realised matches, demonstrating the importance of considering such longer term implications.
    Date: 2006–08
  29. By: Willison , Robert (Department of Informatics, Copenhagen Business School)
    Abstract: While hackers and viruses fuel the IS security concerns for organisations, the problems posed by employee computer crime should not be underestimated. Indeed, a growing number of IS security researchers have turned their attention to the ‘insider’ threat. However, to date, there has been a lack of insight into the relationship between the actual behaviour of offenders during the perpetration of computer crime, and the organisational context in which the behaviour takes place. To address this deficiency, this paper advances two criminological theories, which it is argued can be used to examine the stages an offender must go through in order for a crime to be committed. In addition, this paper illustrates how the two theories, entitled the Rational Choice Perspective and Situational Crime Prevention, can be applied to the IS domain, thereby offering a theoretical basis on which to analyse the offender/context relationship during the perpetration of computer crime. By so doing, practitioners may use these insights to inform and enhance the selection of safeguards in a bid to improve prevention programmes.
    Keywords: None
    JEL: H00
    Date: 2006–09–18
  30. By: DÉCAMPS, Jean-Paul; DJEMBISSI, Bertrand
    JEL: G30 G32 G33
    Date: 2005–09
  31. By: Holck,, Jesper (Department of Informatics, Copenhagen Business School); Pedersen, Mogens Kühn (Department of Informatics, Copenhagen Business School); Larsen, Michael Holm (Department of Informatics, Copenhagen Business School)
    Abstract: Lately we have seen a growing interest from both public and private organisations to adopt Open Source Software (OSS), not only for a few, specific applications but also on a more general level throughout the organisation. As a consequence, the organisations’ decisions on adoption of OSS are becoming increasingly more important and complex. We present three perspectives organisations can employ in their decisions: seeing OSS acquisition as a business case, as COTS acquisition, and as architectural change within a governance framework. We present case studies of decisions on OSS adoption, and categorise the decision criteria we have found. Our results indicate that for large-scale adoption of OSS, focus will be on architectural considerations: enterprise-wide architectures will at first be a barrier, but in the long term OSS’s support of open standards can be a major enabler for OSS adoption. In contrast, in smaller organisations and in small-scale adoption of OSS, the cheap price of OSS is a major enabler, as it provides a good opportunity for experiments and short-term economic benefits. For small organisations these experiments can lead to development of a common IT-architecture, and in larger organisations OSS can be adopted in niche-areas, without significantly violating an existing IT-architecture.
    Keywords: open source; COTS; IT architecture; governance
    JEL: H00
    Date: 2005–09–19

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