STATE REVENUE ELASTICITY AND EXPENDITURE GROWTH

Recent analyses and theories of public choice suggest faster public sector expansion in states with highly elastic revenue structures. This paper estimates the contribution of elasticity of tax revenues to the growth of expenditures in the 50 American states since 1960, based on elasticity measures for state revenue sources compiled by the Advisory Commission on Intergovernmental Relations, an index of state tax structural change, and controls for federal aid to states, population increase, and per capita growth in real income. Results for 1960-1970 show a small positive relationship between revenue elasticity and expenditure growth, but this becomes weak and negative for 1970-1976. Spending has increased most in states with the least elastic revenue sources; these states have made considerable changes in tax laws, while states with elastic revenue sources have been more likely to cut taxes than to increase spending. Federal aid, rather than tax elasticity, is the best predictor of state expenditure growth, while legislative changes in tax structure have enabled states to keep pace with rising demand for revenue due to growth in population and real income.     

INFLATION, PROGRESSIVITY, AND STATE INCOME TAX REVENUES

The combination of progressive income tax structures and inflation has led to significant increases in state income tax revenues. While the federal government has de facto indexed the federal personal income tax, states have generated large relative and absolute increases in their income tax revenues. This paper shows that the ratio of income tax revenues to personal income has grown significantly more in states with progressive income tax structures than those with proportional tax structures. Almost half of such increases may be attributed to inflation. The increase in the relative share of income tax as a source of state revenues has recently run into resistance in some states which have installed income tax indexation measures. This may suggest that the marginal cost of raising revenue through inflation, relative to other means (taxes), is reaching its limits.     

The Tax Threshold: Policy, Principles, and Poverty

In the absence of an independent poverty standard, postwar Britishgovernments have tended to use current, politically determinedsocial security scales (from Unemployment Assistance in the1930s to Income Support today) as their definition of minimallyadequate income levels, commonly known as an ‘officialpoverty line’. A basic principle of taxation since thedays of Adam Smith, however, has been that incomes below theminimum income required for socially defined necessities shouldbe free of tax. The personal tax allowance which determinesthe income tax-paying threshold thus also provides a practicaldefinition of such an official poverty line. Royal Commissionsand official committees since the nineteenth century have endorsedSmith's principle, but it only acquired major political significanceafter the Second World War when income tax began to affect lowearners, particularly after the 1960s when poverty was ‘rediscovered’in the UK. In spite of this potential coincidence of purpose,a review of evidence and interviews with officials shows thatthere has been no co-ordination of policy between the Treasuryand Inland Revenue responsible for determining the level ofthe tax allowances, and the Social Security ministries responsiblefor the minimum benefit scales. The tax threshold has consequentlycontinued to be determined by considerations of political economyand administration and not by the alleviation of poverty. ^* This paper is part of a larger project on concepts of povertyand need in British income maintenance systems, chiefly the‘Assistance’ schemes which ran from 1934 to 1966.I am grateful to the many people who have helped with the project,regrettably too numerous to name here. I am particularly indebtedto Sir Norman Price and Sir Kenneth Stowe, James Meade, DellaNevitt, and). Leonard Nicholson for information on the tax issues,and want to record my thanks to them and to Fran Bennett, JohnHills, Chris Pond, and Adrian Sinfield, and especially RodneyLowe, as well as participants in seminars at the Universitiesof Edinburgh and Essex, and in Budapest, for their advice onthis paper.     

Collectivity,Hierarchy and Context: The Theoretical Framework for the Aggregation Problem

ABSTRACT

Ottoman historians have been severely limited by the availability and quality of primary sources from which historical prices can be compiled. This article stresses the potential of inheritance inventories for expanding the field of Ottoman price history and provides a detailed examination of the quality of the valuations in these sources. The results strongly suggest that inventory valuations are generally consistent and were closely related to the conventional prices of the time. Building upon these findings, it is reasonable to assume that the prices contained in Ottoman inheritance inventories can be reliably employed for historical research.     

The Genesis of Economic Cooperation in the Stories of Joseph: A Constitutional and Institutional Economic Reconstruction

Abstract

The paper analyzes in constitutional and institutional economic terms Joseph’s economic policies, such as changes to property rights arrangements for farming, the introduction of a barter tax on crop production, and the multi-layered bureaucratic hierarchies of Egypt. Utilizing Buchanan’s approach to constitutional economics, I argue that these policies lowered attack/defense costs as they arise, when a group attempts to escape from the natural distribution state (the “war of all”, as Hobbes called it). A key thesis is that this encouraged interacting parties, already on the grounds of selfinterested choice, to engage in societal contracting out of the “war of all,” thereby reaping mutual gains.

Complementary to this strand of analysis, I have drawn on other institutional economic concepts, particularly those that were introduced by Williamson, and by North and Weingast. The paper argues in this respect that Joseph’s policies credibly and more reliably guaranteed property rights, which in turn lowered transaction costs of the interacting parties, i.e. Egypt and Israel. This ultimately yielded mutual gains and high economic performance for the society depicted in Genesis. In this way, cooperation was generated in economic terms.     

Heroes and Political Communities in John Ford's Westerns: The Role of Wyatt Earp in My Darling Clementine

Abstract

Widespread moral corruption, particularly of the sort fostered by their internal security agencies, was a key feature of communist regimes. The Lives of Others provides a dramatic portrayal of this phenomenon as it occurred in East Germany. The film can appear, given its central story of the moral redemption of a Stasi officer through his becoming intrigued by the lives of artists, to be an overly idealistic or audience-pleasing testament to the humanizing power of art. But the film also reveals the possible moral corruption of the artists. This essay provides a typology of the sorts of moral corruption exemplified by the situations of different characters in the film and shows that the main artist is actually saved from his impending corruption by the Stasi officer's actions. This reciprocal rescue is the key feature of the film's plot; it teaches that while art can undermine and resist totalitarian corruption, it is also susceptible to its snares—especially when it apolitically relies upon its own resources.     

Historians,the War of American Independence,and the Persistence of the Exceptionalist Ideal

Prince Kaunitz and the Balance of Power; Franz A.J. Szabo

The American Revolution in an International Perspective: Views from Bicentennial Symposia; Lawrence S. Kaplan

The Reign of Sir Edward Grey as British Foreign Secretary F.H. HINSLEY, ed. British Foreign Policy under Sir Edward Grey. Cambridge: Cambridge University Press 1977. Pp. 702; ZARA S. STEINER. Britain and the Origins of the First World War. New York: St Martins Press 1977. Pp. 305.; Samuel R. Williamson, Jr     

TAXATION AND INTERNAL MIGRATION—EVIDENCE FROM THE SWISS CENSUS USING COMMUNITY‐LEVEL VARIATION IN INCOME TAX RATES*

ABSTRACT We investigate the relationship between income tax rate variation and internal migration for the unique case of Switzerland, whose system of determining tax rates primarily at the community level results in enough variation to permit analysis of their influence on migration. Specifically, using Swiss census data, we analyze migratory responses to tax rate variations for various groups defined by age, education, and nationality/residence permit. The results suggest that young Swiss college graduates are most sensitive to tax rate differences, but the estimated effects are not large enough to offset the revenue‐increasing effect of a rise in tax rate. The migratory responses of foreigners and other age‐education groups are even smaller, and reverse causation seems negligible.     

The Diplomatic Career and Historical Work of Olympiodorus of Thebes

Abstract

The rise of the Druze emir, Fakhr al-Din II Ma’n, is best treated as a case study in political dynamics. A tax farmer in the Shuf in 1590, who received his first administrative appointment three years later, he became the most powerful provincial leader along the Levantine coast by the late 1620s, when he controlled three districts (sanjaks) in the Ottoman province of Damascus, and also the province of Tripoli. Except for Jaffa and Alexandretta, he controlled the key ports along the coast of Syria and Palestine — Sidon, Beirut, and Tripoli; smaller ports like Acre; and most of the trade in regional goods and the associated revenues. ¹ Of die five ports along the southern Levantine coast - Acre, Sur, Hait~, Tanmra, and Jaffa - olfly tile last earned sigtfificant revenues ill tile late sixteenth century, from pilgrims: W. Hfitteroth and K. Abdulfattah, Historical Geography of Palestine, Transjordan, and Southern Syria in the Late 26th Century (Erlangen, t977)., pp. 15, 18q9, 2.5-6, 95.      

STATE PER CAPITA INCOME CONVERGENCE SINCE 1950: SHARECROPPING'S DEMISE AND OTHER INFLUENCES*

ABSTRACT. Prevailing theories wrongly attribute post-1950 convergence of state per capita incomes to (1) neoclassical adjustment mechanisms, (2) institutional sclerosis, and (3) southern industrialization. But convergence-essentially a weakening of southern poverty–resulted mainly from the South's overcoming its legacy of slavery: the sharecropper-tenant system, agricultural dependence, high black population percentages, poor education, and low wage rates. Sharecropping was the dominant feature; abject poverty among sharecroppers dragged southern income to its knees. Sharecropping's collapse and attendant South-to-North migration affected the legacy's other features in ways that raised income. Manufacturing growth and transport improvements caused relative income in the West to decline.     

Quantifying the Family Frailty Effect in Infant and Child Mortality by Using Median Hazard Ratio (MHR)

Abstract

Most microlevel studies in the social sciences have focused on the impact of different measured variables. While some studies have also dealt with unobserved variation, it has usually only been controlled for to perfect the estimates of the observables. In this article, the authors applied a modified version of a recently developed method designed to quantify the effect of unobserved variation in continuous time multilevel models, called a median hazard ratio. It allows a direct comparison of the effect of unobserved heterogeneity with standard relative risks. The method is used in an analysis of infant and child mortality in southern Sweden during the period 1766–1895. The empirical findings indicate that unmeasured differences between families were more important than either socioeconomic status or gender throughout this period.     

Globalization,Recession and the Internationalization of Industrial Districts: Experiences from the Italian Gold Jewellery Industry

Abstract

Globalization and the recent recession crisis are significantly challenging Italian industrial districts (IDs), leading to deep transformations in their internationalization, innovation and organization strategies. With our empirical focus on a single industry (gold jewellery) and a specific country (Italy) and through the theoretical lenses of the global value chain (GVC) approach, the evidence in this article sheds light on the differences in how three IDs within Italy's gold jewellery sector (Valenza Po, Arezzo and Vicenza) compete in the global arena. Our comparative analysis reveals striking differences among these districts with regard to their upstream and downstream internationalization strategies in response to two industry shocks: increasing global competition in the early 2000s and the world economic recession of 2008–2009. Our explanation for the varied gold jewellery district responses to these two global crises involves both internal and external factors: (1) structural differences between the three IDs; (2) distinct business strategies; and (3) how these districts are linked to the gold jewellery GVC.     

Acts of heritage,acts of value: memorialising at the Chattri Indian Memorial,UK

Abstract

The Chattri Indian Memorial is a public site that hosts and embodies heritage in complex ways. Standing on the edge of Brighton, UK in a once-remote part of the Sussex Downs, the Memorial was built in 1921 to honour Indian soldiers who fought on the Western Front during the First World War. As both a sacred place and a space of socio-cultural heritagization processes, the monument is an enduring testament of past values of war heroism, but also more ephemeral practices of ritual. The article documents the heritage-making at work within memorialisation at the Chattri as a case study, examining how differing ‘valuations’ of a memorial site can be enacted through time, between material form and immaterial practices, and across cultures. The article theorises participants’ current affective practices as conscious ‘past presencing’ , and analyses how their conscious acts of heritage-making affectively enacted values of morality, community and belonging.     

‘If ah’ve goat’i choose between putting shoes on ma bairn’s feet and payin’ this bill,ah’m puttin’ shoes on ma bairn’s feet’ – poverty and the poll tax

ABSTRACT

The poll tax was a key episode in British politics. The widespread opposition campaign has been described as an important expression of Scottish political and national opposition to Thatcherism. The historiographical focus on Glasgow has been influential in this interpretation. By broadening the focus to other Scottish geographies, this article challenges this portrayal and highlights the lived experience of poverty that underpinned resistance and gave political discourses their power. By reframing the argument through the lens of poverty it develops an alternative understanding of the causes of the tax, inverting the narrative that suggests political discourses drove resistance.     

THE LONG-RUN ECONOMIC IMPACTS OF FEDERAL,STATE, AND LOCAL FISCAL POLICIES IN METROPOLITAN AREAS*

ABSTRACT. This paper uses new estimates of metropolitan factor demand and output supply functions to study how federal, state, and local fiscal policies affect metropolitan economies. We illustrate our work with findings for ten metropolitan areas in five states for changes in state corporate income taxes, local property taxes, the federal corporate income tax, an investment tax credit, interest rates, public capital stocks, output prices, and tax and regulatory policies affecting gross wages. It is clear from these simulations that a policy that is nominally the same everywhere will have repercussions that vary widely across regions and cities.     

Shellfish Exploitation in the Western Canary Islands Over the Last Two Millennia

ABSTRACT

The residents of the Canary Archipelago consumed limpets since the arrival of humans ～2500 yrs. ago, and these harvested gastropods were deposited in large coastal shell middens. This work preliminarily explores shell margin oxygen isotope composition (δ¹⁸O) and body size of the black limpet (Patella candei d’Orbigny, 1840) from archaeological sites in the Canary Islands to assess possible seasonal variability and intensity of shellfish collection throughout the late Holocene. The shell margin δ¹⁸O values of 100 shells (radiocarbon dated between ～500 and ～1800 cal. yr BP) were analysed to estimate sea surface temperature (SST) at time of death. Paleotemperature estimates suggest shellfish harvesting was not year-round, and was avoided in the cooler months (when SST?<?20°C). This pattern differs from most higher latitude Mesolithic and Neolithic human groups, which gathered shellfish year-round, targeting winter more heavily. Preliminary body-size measurements suggest shell sizes have experienced a decline from aboriginal times to the present, which possibly resulted from increasing anthropogenic pressures. During aboriginal inhabitation, maximum adult shell size remained stable, suggesting that present-day harvesting practices are more intense than harvesting from aboriginal human groups. This intensive collection has likely diminished the average adult size of limpet populations in the islands by ～27%.     

A NOTE ON INCOME TAXES AND DEGREE ONE PRODUCTION HOMOGENEITY*

ABSTRACT In a recent JRS article [Martinich and Hurter (1985)] we examined the production and spatial impact on a firm operating in an uncertain environment due to the imposition of a flat rate income tax. The impacts were shown to depend on the properties of the firm's production and preference functions. In this paper we develop further results for the case where the firm has a degree one homogeneous production function. It is shown that an income tax is technologically and spatially neutral for any risk-averse firm, without regard to any other properties of the preference function. Thus, we not only extend our earlier results for the degree one homogenous production function case but we also correct an error related to this case in the earlier paper.     

Genealogy of Colonial Land Registration and State Land in Portuguese Timor

ABSTRACT

Establishing territorial control was one of the primary activities of colonial presence on Timor from the late nineteenth century. In Portuguese Timor as elsewhere in Southeast Asia, the colonial state pursued codification and regulation of land in multiple forms, including serial attempts to enact land registration in tandem with colonial projects including pacification, resource extraction, and generation of state income. Seeking to extend official purview to Timor-specific customary land use and practices, Portugal defined distinct social categorizations linked to land access and ownership. This article traces the policies governing land in Portuguese Timor from the late 1800s to the mid-1900s, highlighting state land acquisition, registration processes, laws and procedures asserting state control over land transactions, and international influences on Portuguese practices.     

Adult Male Mortality in India

This paper presents levels and trends of adult male mortality in India and its major states during the post-independence period applying the widowhood method on census data. It also estimates adult male mortality for all the districts from major states of India. We adjusted widowhood estimates for possible bias due to remarriages and examined the sensitivity of adjusted estimates to different scenarios of remarriage rates. Comparison of widowhood estimates with direct estimates from official sources supports the credibility of widowhood estimates. Information obtained from widows aged 40–44 and 45–49 provided the most convincing patterns of adult mortality. Trends in adult mortality suggest that maximum gain in ₄₅q₁₅ for India and its states occurred during 1949–1960. Adult male mortality varied substantially across the states of India. Although adult life expectancy has been rising in India, the rate of mortality reduction has been decreasing over the last few decades.     

Tax Havens and Global Capitalism: Vanuatu and the Australian Connection

The growth of tax haven activities has been a feature of recent global capitalist development, yet geographical analysis of these activities has been limited. Vanuatu has become the South Pacific's major tax haven, expanding through its ability to capture (mainly) Australian and Asian investment in the 1970s and 1980s. Tax haven activities in Vanuatu have increasingly contributed to local employment and income generation, despite the growth of competition from newer tax havens in the region. Vanuatu is not used by major Australian public companies to the extent that either Hong Kong or the Caribbean tax havens are used, and it is suggested that activities from Asia are increasingly dominating Vanuatu's finance centre. Recent Australian taxation legislation may reduce Australia's role in the Vanuatu tax haven further, although it is apparent that there are limitations to the legislation's effectiveness in stopping tax haven activities.