Public Goods and the Derivation of Land Value Assessment Schedules within a Spatial Equilibrium Setting

A method of mapping the classic economic public good into a spatial realm is identified. Within the spatial equilibrium land use model an ideal government distributes a public good; sets mill rates, assesses land, and collects property taxes; and maintains a balanced budget. Equilibrium is brought about within the household sector by the unfolding of the land value schedule both over space and in response to the public sector. The household and public sectors are mutually within a steady state when there is no excess demand or supply of public good. The model is extended to elucidate Tiebout's hypothesis that government activity is reflected in land values. Also, a criterion for judging fairness of the spatial equilibrium assessment schedule is presented and applied.     

Public Sector Relocation Policies in the UK and Ireland1

Public sector relocation from capital cities to reduce costs and ameliorate regional disparities has been a high profile but little researched government policy. The paper outlines the reasons for the growth of interest in public sector relocation in Europe, and then compares UK and Irish relocation policies. It argues there appears to be a good case for public sector relocation, but there is less agreement on the precise means whereby dispersal should be achieved. The paper highlights successful aspects of public sector relocation policies in the UK and Ireland and indicates areas for further research. Successful public sector dispersal depends on a willingness on the part of government to take a long-term view, and historical evidence suggests it is difficult to move senior posts from the capital.     

The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions

In this paper we analyze the effect of infrastructure on the cost and productivity performance of the private productive sector of Spanish regions over the period 1980–1993. We use a dual approach based on cost functions that allows us to recover the usual parameters estimated with production functions. In addition, we obtain rates of return and cost elasticities of production factors at the regional level. Our framework explicitly considers that some factors are quasi-fixed and their volume can differ from their optimal endowment levels. Our results indicate that the public sector has contributed significantly to enhance productivity and reduce costs in the private sector of almost every Spanish region. Nevertheless, there is still scope for the government to continue its investment efforts, given that there remains an appreciable gap between observed and optimal public capital, and we find that in the long run, public capital promotes private investment.     

Public administration in the Australian Journal of Political Science: A review

This article reviews publications on public administration in the Australian Journal of Political Science (AJPS). A distinction needs to be drawn between public administration as a discipline and as a field of inquiry that engages specialists from several areas. The latter has been more significant in Australia in contrast to Europe and the United States. The questions discussed in the AJPS cover changes in the field and practice of public administration; the state and government; the structures of local government, public organisation and federalism; interfaces between public administration and other sectors and institutions; and issues with public sector reform and accountability. Despite the emphasis on governance in discourse and practice, the role of government continues to be central, and what emerges from experiments in new governance is that the authority of government and the significance of hierarchy (compared to markets and networks) very often remains pivotal.     

Voluntary Environmental Programs in the Public Sector: Evaluating an Urban Water Conservation Program in California

Solving conflictual environmental policy problems is increasingly falling under the purview of local governments and public agencies. Nonregulatory approaches, such as the development of voluntary environmental programs (VEPs), could offer a useful policy alternative as they often have greater political traction and flexibility. However, there has been little work examining the use of VEPs in the public sector. This article uses a new dataset from California to examine how political institutions affect decisions by local governments and public agencies to participate in a voluntary urban water conservation program and whether this program has improved the water conservation performance of its members. The results show that special district governments, private utilities, and water suppliers dependent on purchased water are more likely to participate in the program and to join early. However, urban water agencies that have joined the program have not reduced their per capita water use more than those that have not. These results underscore the influence of political institutions in public‐sector decision making and demonstrate that, as in the private sector, commitment to a VEP by local government and public agencies does not guarantee implementation or environmental improvements. While voluntary programs offer political and administrative advantages, in order for VEPs in the public sector to be effective they must be accompanied and supported by credible enforcement mechanisms, performance standards, and rigorous monitoring programs.     

Punctuated Equilibria in the Private Sector and the Stability of Market Systems

The article examines longitudinal trends in expenditures by over 1,200 private firms, finding evidence of punctuated equilibrium—a pattern of change widely interpreted as evidence of stick‐slip dynamics in decision‐making processes. Levels of punctuation in the private sector closely resemble those observed in studies on public budgeting, suggesting that the private sector is not on average any less resistant to change than government. Both private‐ and public‐sector decision making is a function of deliberative processes, which the article compares to market systems. Deliberative decision making takes place when a group comes to a consensus about the allocation of resources. Market processes aggregate the actions of many independent decision makers to arrive at an outcome, such as the value of a commodity. The article considers the relative informational efficiency of these two processes and concludes that market systems should be more adaptive to incoming information. Three case studies provide natural experiments to investigate the stability of outputs during periods of deliberative and market control. A key finding is that when outputs are determined by market systems it greatly reduces the magnitude of punctuation.     

GOVERNMENT AND THE CANADIAN URBAN SYSTEM: INCOME TAX,TRANSFER PAYMENTS,AND EMPLOYMENT

The impact of government on the Canadian urban system is explored using Revenue Canada data from personal income tax returns. Variations in taxes and in certain forms of government expenditure among urban places are linked with city size, economic base, per capita income, and rate of growth. It is found that many locations are heavily dependent on the public sector and that, overall, government programmes redistribute income toward smaller and less prosperous places. The most significant effect, however, is the stabilization of local economies by means of a large and relatively constant public sector. L'impact du gouvernement sur le système urbain canadien est étudié en utilisant des données de Revenu Canada qui proviennent des déclarations d'impǒt sur le revenu des particuliers. Les variations de taxes et de certains types de dépenses publiques parmi les régions urbaines sont associés avec les variables de taille urbaine, base économique, revenu per capita, et taux de croissance. Il est démontré que plusieurs régions sont fortement dépendantes du secteur public et que, globalement, les programmes gouvernementaux redistribuent le revenue vers les régions les plus petites et les moins prospères. Mais l'effet le plus significatif est celui de la stabilisation des économies locales par le biais d'un large et relativement constant secteur public.     

Infrastructure shortfall in the United Kingdom: the private finance initiative and government policy

Investment infrastructure is essential for long term economic growth, sustainable regional economic development, and the quality of urban life. Yet the available evidence suggests a significant shortfall in current UK government investment on infrastructure, and a long term pattern of low investment compared to other European countries. Given the pre-occupation of the Labour government with managing expenditures within the parameters set by the previous government, and the vulnerability of any government to financial markets' valuation of current spending plans in relation to interest rates and currency exchange rates, there is little likelihood of major new public spending on infrastructure in the near future. In this context, the Private Finance Initiative (PFI) is very important for the government's plans to make up the shortfall. Although inherited from the previous Conservative government, the PFI has powerful advocates within the Labour government. The PFI is the formal mechanism by which government departments, agencies and instrumentalities, like the National Heath Service, utilise private sector investment capital and, in particular, pension fund assets, to revitalise public services. This paper sets out the institutional history of the PFI, beginning with the Thatcher government's Ryrie Rules, the efforts of the Major Conservative government to make it a viable operational practice, and the reasons why the new government supports PFI and has made significant moves to improve its effectiveness. Still we are sceptical about the future of the PFI. We show that the PFI has foundered upon fundamentally flawed design and the politicians' obsession with control of public sector spending. Notwithstanding recent `reforms', PFI may only succeed if the PFI process is decentralised and linked explicitly with regional development programmes. In any event, given the difficulties posed by the PFI process for private investors, perhaps different institutional responses to infrastructure shortfall should be contemplated, including the introduction of traded infrastructure bonds.     

Regulating commercial public service broadcasting: a case study of the marketization of Norwegian media policy

This article looks at the issues facing the regulation of commercial public service broadcasting in Norway. A document analysis of the 2010 renegotiation process to renew TV 2’s public service licence illuminates how a general marketization affects the regulation of the television sector. This process comments on Hallin and Mancini’s model of democratic corporatism in the Nordic countries regarding the power of the state to regulate private media enterprises as cultural institutions. As such, the process of commercialization should include not only the broadcasting sector, but also the political sector. As part of a solution to retain TV 2’s licence agreement, the government effectively had to re‐regulate the cable distribution sector. This case study demonstrates not only the enduring strength and value of the public service institution in a political context, but also the extent to which regulation is guided by technical and economic forces to sustain democratic considerations.     

Public Production of Anti‐Retroviral Medicines in Brazil, 1990–2007

This article examines Brazil's experience with the public production of anti‐retroviral drugs (ARVs) and highlights the important role of the state in guaranteeing access to life‐saving medicines and fulfilling human rights commitments. The key to understanding the government's successful intervention in the pharmaceutical market and provision of treatment rests on the synergistic, albeit political, relationship between reform‐minded public servants and civil society activists. This article argues that three key factors led to the government becoming a direct producer of ARVs: 1) a pre‐existing infrastructure of public laboratories that have served the public health system to a greater or lesser degree since the 1960s; 2) strong civil society pressures, including public health activists both inside and outside the government; and 3) a pharmaceutical sector characterized by high prices and controlled by transnational drug companies.     

MUNICIPAL AMALGAMATION AND THE GROWTH OF THE LOCAL PUBLIC SECTOR IN SWEDEN*

ABSTRACT. The proposition that a decentralized structure of local governments can effectively constrain public sector growth is empirically investigated. Data on Swedish municipal sector size for the 1942–87 period are analyzed within the context of a median voter model. The results indicate that decentralization, measured by the number of units of local government serving a given population, constrains the influence of institutional factors (e.g., rent seeking, bureaucracy) on local budgets as long as these units exceed some minimal threshold size. The findings support the view that communities should be given the flexibility to determine their own ideal pattern of local governments.     

The muse with a wandering eye: the influence of public value on coproduction in museums

ABSTRACT

Across management, marketing, public administration and museology literature, coproduction has been presented as an innovative approach to service improvement. This case study of the Australian museum sector contributes to the instrumentalisation debate, by revealing the potential inhibitors to such improvements when coproduction distracts rather than enhances the work of cultural institutions. While public value requires the strategic cultural manager to negotiate between ‘upstream audiences’ (government and funding bodies) and ‘downstream audiences’ (users and the body politic), these two groups appear to exert different levels of influence. This research suggests that upstream audiences currently absorb the attention of museums. As a result, the manner in which museums coproduce, and the motivations for this work, appear to be geared towards advocating the public value of museums to government and funding bodies. This case study suggests that museums sacrifice the service innovations and exhibition enhancements offered by coproduction (intrinsic outcomes) to pursue government funding and support (instrumental outcomes).     

Political Decoupling: Private Implementation of Public Policy

Where policy goals can be achieved through regulation of private firms, private provision of public services allows governments to separate public policies from their political costs by shifting those costs to the private sector. Over the past three decades, financial decoupling has emerged as a regulatory strategy for promoting conservation, especially in the energy sector. Decoupling refers to the separation of a firm’s revenues from the volume of its product consumed, which allows companies to pursue resource efficiency free from financial risk. Similarly, when private firms provide public services, they separate public policies from their political costs. This political decoupling allows governments to pursue controversial policies while avoiding their attendant political risks. Applied to environmental policy, this theory implies that potentially unpopular conservation policies are more likely to be adopted and succeed when implemented through private firms. As an initial test of the theory, we analyze California water utilities and their responses to that state’s drought from 2015–2017. Analysis shows that, compared with those served by local government utilities, private utilities adopted more aggressive conservation measures, were more likely to meet state conservation standards, and conserved more water.     

The Privatization of Health Care Cleaning Services in Southwestern British Columbia,Canada: Union Responses to Unprecedented Government Actions

This paper analyzes the political dynamics between a newly elected, right‐leaning provincial government and a left‐leaning public sector union that resulted in the privatization of 4000 health support housekeeping jobs in southwestern British Columbia in less than a year. The article documents how government set the stage for privatization, the struggle that ensued when the union resisted concessionary bargaining, and the new challenges that emerged for both union and management once housekeeping and other support services were taken over by multi‐national service corporations. This case is significant because the size and scope of this privatization and the legislation that facilitated it are unprecedented in Canadian history.     

新公共管理对官僚制是摒弃还是扬弃——基于制度层面的思考

新公共管理是20世纪70年代以后西方各国先后开展的以“企业家政府”为理论模型、以市场化运作模式和私营部门的管理为研究方法、以提高政府工作效率为目的的一项改革运动。新公共管理对政府流程再造的初期的确发挥了一定的作用,提高了行政效率,但是仍然无法改变官僚制的人事制度。新公共管理所提出的私营部门的管理方法,只是对官僚制的修正与补充,是对官僚制的扬弃,而不是摒弃。     

NGOs and Environmental Public Goods: Institutional Alternatives to Property Rights

NGOs are linked to environmental objectives for good reason: non-profit NGOs provide a flexible, private-sector answer to the provision of international environmental public goods. The non-profit sector can link for-profit, non-profit, and public-sector objectives in complex contracts. This article examines how, for the case of the National Biodiversity Institute (INBio) in Costa Rica, such complex contracts with both domestic and international parties provide partial solutions to public goods problems in the absence of private property rights over genetic resources. INBio's ‘monopoly’ position, legitimized by the local government, brings in rents from genetic resources which are reinvested in the production of public goods.     

Public debt and financial crises in the twentieth century

The costs of wars have been the main driver of public debt in the Western World during the modern era. The late twentieth century stands out as a period that saw a pronounced increase of government debt to GDP ratios in peacetime. This paper assesses the role that financial crises have played in shaping the public debt trajectory in the twentieth century. Focusing on the experiences of 14 industrial economies, I show that financial crises have long and lasting effects on public finances. I provide evidence that the costs of financial crises have increased strongly in the second half of the twentieth century and that the costs of financial crises grow with the size of the financial sector. In many countries, the rising costs incurred from stabilizing the economy after financial crises were an important cause of the peacetime surge of public debt ratios in the late twentieth century. In today's highly financialized economies, financial crises have become a key risk for public finances.     

Notes on contributors

Australian governments are facing some confusion about public sector accountability. This paper argues that the opaque nature of accountability which persists is the result of changes being wrought, separately and together, by a number of macro factors of which public sector reform and corruption inquiries are but two. This explanation is developed by an examination of some fifteen specific issues which are symptomatic of the lack of transparency in Australian public sector accountability, and simultaneously, contribute to it. The paper contends that clarity is likely to emerge only slowly as gaps and anomalies are recognised and gradually remedied. The paper seeks to contribute to the process by offering a definition of accountability and an outline of several different types of accountability frameworks now operating in Australian governments.     

CITIZEN PERCEPTION OF POLICE SERVICE DELIVERY: A LOOK AT SOME CONSEQUENCES

What difference does it make if public services are inequitably distributed? This articles addresses that question by examining the relationships among perceived inequity in service delivery and dissatisfaction with public services on-the-one-hand, and a variety of other attitudes and reports of behavior on-the-other. In the case of police services, I find that perceptions of inequity and dissatisfaction with services have negative consequences both for the quality of life individual citizens enjoy and for the capacity of government to provide services effectively and efficiently.     

The Sector Theory and the Canadian Arctic, 1897–1970

ABSTRACT

Although European discovery in the Arctic began during the Middle Ages, sovereignty issues did not become a major concern until the early twentieth century. At that time, the controversial sector theory was taken up by Canada, the United Kingdom and the Soviet Union, but opposed by the United States and Norway. This article examines the sector theory in Canadian state practice, clarifying the version of the theory to which Canadian officials subscribed and the aims they hoped to achieve through its use. The international response to Canadian claims is also described.

The article demonstrates that Canadian use of the sector principle during the 1920s was pragmatic and successful, but in later decades, confusion arose both inside and outside the government. Inconsistent public statements were made by government representatives in the 1950s and 1960s; these have puzzled and misled scholars ever since. Differences between the Canadian and Soviet versions of the sector theory, lack of adequate institutional memory in Ottawa, and partisan political rivalries all played a part in creating the confusion, but perhaps the key factor was the inherent difficulty of state control over this remote yet geopolitically crucial region.