Does Income Distribution Affect U.S. State Economic Growth?*

Abstract. Numerous models propose an income‐distribution/growth linkage, but the empirical evidence is ambiguous and depends on the regression approach. Mixed findings are not unexpected if there are differing short‐ and long‐term responses. Approaches utilizing cross‐sectional variation primarily reflect long‐run effects, whereas those using time‐series variation primarily reveal short‐run effects. This study reconciles these issues using U.S. state data. After allowing for short‐ and long‐run responses and for separate effects between the tails and middle of the distribution, the consistent pattern is the middle‐class share and overall inequality are positively related to long‐run growth. However, the short‐run income‐distribution response is less clear.     

Between realism and the 'New Right': geopolitics in Germany in the 1990s

This essay explores the connections between geopolitics and political conservatism. The introductory argument is that geopolitics historically has been appealing and useful for two very different expressions of conservatism: one which aims to preserve the political geography of the existing international status quo and one which seeks to transcend it and establish a new international order. Through an examination of the 'renaissance' of a conservative geopolitics in Germany, the essay considers how this particular pattern is reproduced in the present day. Although this conservative geopolitics operates for the most part at the fringes of political discourses in Germany, it does have a more specific significance for nationalist-conservative perspectives and those of the 'New Right', both in Germany and elsewhere.     

Post–conflict administration and reconstruction

Book reviewed in this article: Richard Caplan, A new trusteeship? The international administration of war–torn territories     

Australia's relationship with the United States: the case for greater independence

A number of recent events—especially attempts to negotiate a bilateral trade agreement and Australia's participation in the conflicts in Afghanistan and Iraq—have thrown Australia's relationship with the United States into sharp relief. While this relationship has historically enjoyed strong bilateral endorsement, such uncritical support is beginning to unravel. At the very least, the relationship is being subjected to a renewed, more critical scrutiny. This paper argues that a dispassionate analysis of the relationship is appropriate and overdue. Not only are the benefits that accrue to ‘Australia’ from the relationship debateable, even when judged within the limited calculus of the ‘national interest’, but Australia's uncritical support for US foreign policy is also helping to entrench potentially damaging aspects of American foreign policy and— somewhat ironically—undermining the legitimacy of its pre-eminent ‘hege monic’ position.     

From 'industrial districts' to 'knowledge clusters': a model of knowledge dissemination and competitive advantage in industrial agglomerations

This paper integrates knowledge-based theories of the firm withgeograph-ical studies of industrial agglomeration to producea model that helps explain the competitive advantages enjoyedby proximate firms located in geographical clusters. We proposea hierarchy of specialized knowledge stocks at both firm andcluster levels and suggest that the comparative advantage conferredby knowledge resources at each level is protected, in part,by asymmetries in knowledge flows from level to level. The paperargues that codified component knowledge is more easily spreadthan firm-specific architectural knowledge. Nevertheless, overtime, agglomerations may develop a cluster-specific form ofarchitectural knowledge that facilitates the rapid disseminationof knowledge throughout the cluster by increasing the learningcapacity of proximate firms and thereby conferring cluster-specificcompetitive advantages.