In Defence of Neo-Classical Neo-Populism

This paper is a response to the discussion in the special issue of this Journal on Redistributive Land Reform Today (Vol. 4, Nos. 1 and 2). We begin by attempting to clarify the methodological debate, differentiating our approach, which our critics call neo-classical neo-populism, from mainstream neo-classical economics and historical materialism. We then distinguish between land tenure reforms and redistributive land reforms, and argue that it is the latter that really matter. Next, we address the issue of the inverse relationship between farm size and productivity. Fourth, we discuss cases in which systems of labour control are used to transform the peasantry into a landless rural proletariat and challenge the view that systems of labour control can usefully be reduced to a problem of transaction costs. We end with discussions of reform in the transition economies, China and Bangladesh, where we defend the view that it is the distribution of landownership rather than operational holdings that largely determines the extent of poverty.     

Officer retention and military spending: the rise of the military-industrial complex during the Second World War

This article examines how the regional distribution of US military personnel contributed to military expenditures around the country. We first discuss a theory of political economy for military spending—officers who remain in service can eventually help channel military funds and employment to their respective regions of origin, through direct military spending decisions or indirect political channels. Further, if officer retention is positively related to less industrialization at home (fewer work opportunities at home induce greater service lengths), this channel will induce greater progressiveness in military spending. To test these ideas we use the personnel records of officers serving in the US Navy from 1870 to the late 1930s. Tracking the tenure of all officers, we construct measures of ‘military representation’ across US counties. Through ordinary least squares, Tobit, and instrumental variable approaches, we find that senior naval officer representation across regions positively and robustly predicts regional naval spending (but not spending from other branches) during the Second World War.     

Public Choice and Accounting Standard Setting in New Zealand: An Exploratory Study

Recent studies in accounting regulation have used either the capture argument or the pluralistic notion to describe the enactment of accounting regulations. This paper explores the nature of the impact of public choice in accounting standard setting in New Zealand using the pluralistic notion. To provide an insight into the standard-setting process, this paper involves an examination of the establishment, withdrawal and re-establishment of New Zealand's most controversial standard after current cost accounting — the standard on investment property accounting (SSAP 17). The investigation considers the nature of public choice in the agenda entrance, demand and supply factors influencing standard setting in New Zealand. The results indicate that the New Zealand accounting standard-setting process is pluralistic in a limited way. Like most other English-speaking countries, the scope of participation for certain groups has been institutionalized on the supply side by way of membership of standard-setting committees of the New Zealand Society of Accountants. On the demand side, however, consumers of accounting have been provided with only limited scope for participating in the formal process of standard setting. Nevertheless, other means (i.e., exogenous and informal ones) may be used to influence the process. Overall, from both the demand and supply perspectives of regulation, the Big-8 accounting firms (as they were previously known) followed by the preparers of financial statements, seem to have greater participatory capacity in the New Zealand standard-setting process.     

DETERMINANTS OF ENVIRONMENTAL NONCOMPLIANCE BY PUBLIC WATER SYSTEMS

Whereas a large number of empirical studies have been devoted to analyzing determinants of environmental compliance (EC) by firms, less attention has been paid to EC by public water systems (PWS). To address this gap in the literature, this article uses data on compliance with maximum contaminant levels (MCL) under the Safe Drinking Water Act for 971 PWS in Arizona and identifies the characteristics of PWS that are associated with violation of MCL standards. Three main findings emerge from the analysis. First, larger PWS are more likely to violate MCL standards than smaller PWS. Second, publicly owned PWS have slightly higher probability of violating MCL standards than privately owned systems. Finally, PWS serving residential areas are more likely to violate MCL standards, as opposed to PWS serving school districts or office buildings. The results suggest that for ensuring safe water for people, effectiveness of monitoring policy, and an efficient utilization of resources, the environmental agencies may focus their monitoring and enforcement efforts on these water systems.(JEL K32, Q53)     

The Investment Performance of U.S. Equity Pension Fund Managers: An Empirical Investigation

This paper presents an empirical examination of the selectivity and market timing performance of a sample of U.S. equity pension fund managers. Regardless of the choice of benchmark portfolio or estimation model, the average selectivity measure is positive and the average timing measure is negative. However both selectivity and timing appear to be somewhat sensitive to the choice of a benchmark when managers are classified by investment style. Meta-analysis revealed some real variation around the mean values for each measure. The 80 percent probability intervals for selectivity revealed that the best managers produced substantial risk-adjusted excess returns. We also found a negative correlation between selectivity and timing, but we argue that the observed negative correlation in our data is largely an artifact of negatively correlated sampling errors for the two estimates.