Redistricting reformulated: A maximum interaction/minimum separation objective

Alternative objective functions to the population centroid type commonly employed in computerized political districting algorithms are suggested and discussed. Districtings based on maximum overlap of individuals' “action spaces” or on minimum aggregate length of interpersonal separations better represent the spatio-political notion of “compactness” than do those based on centroid measures. The traditional analogy between the warehouse location problem and the optimal districting problem may thus be an inappropriate one. The proposed reformulated optimal districting problem with a spatial interaction or interpersonal separation objective may be formally stated as a quadratic integer program. The solution to the program is seen, however, to be only one of several possible “optimal” political partitionings. Regardless of the specific compactness measure chosen, separate “mean” and “modal” districtings may exist.     

Social indicators and social accounts

This paper defines “social indicators” as statistics which have two denning characteristics. They are, first, measures of direct normative interest; that is, what the economist would call measures of “welfare” and “illfare”. Most existing government statistics are not of this type, because a large proportion of existing statistics are measures of government or other institutional activity, produced as a by-product of accounting or administrative routine. The second defining characteristic of a social indicator is that it should fit into a systematic scheme of classification or aggregation which would make possible a balanced assessment of socio-economic progress or retrogression in some broad area, as well as disaggregated and detailed study of particular problems.

The work in government on social indicators was designed in part to meet the needs of Toward a Social Report, a preliminary study of the condition of American society issued by the U.S. Department of Health, Education, and Welfare (Superintendent of Documents, Wash. D.C. 20402; 1969). Social indicators can also fit, with other statistics, into a set of “policy accounts” or scheme of social accounting, which would relate social expenditures to the social indicator they were designed to affect. This would encourage broadened cost-benefit analysis and rational public decision-making.     

The economic system as an end or as a means, the socialization of consumption, and the future of socialism and capitalism

After the demise of “real” socialism, socialism can be salvaged as a social preference system oriented towards equality and social justice, to be implemented without systemic constraints in the organizational and institutional sense. At the same time there is a case for creating an institutional framework allowing different forms of economic organization, capitalist and non-capitalist, to compete on equal footing, in an evolutionary perspective. Another way for a spontaneous extension of the domain of socialism could derive from the socialization of consumption, if the consumption of public goods continues to make up a growing component of real consumption.     

Evaluating shifts in Japan's quality-of-life

This paper presents a Data Envelopment Analysis/Malmquist index (DEA/MI) analysis of the change in quality-of-life (QOL), which is defined as the state of a social system as measured by multiple social-indicators. Applying panel data from Japan's 47 prefectures for the period 1975–2002, we identify significant movement in the country's overall QOL using a “cumulative” frontier shift index. Results suggest that Japan's QOL rose during the so-called “bubble economy years” (second half of the 1980s), and then dropped in the succeeding “lost-decade” (1990s). We also identify those prefectures considered most “responsible” for the shift(s) in QOL. Moreover, the use of both upper- and lower-bound DEAs enabled an evaluation of both “good” and “bad” movements in QOL.     

Congestion Caused by Speed Differences

This paper investigates road traffic congestion caused by speed differences using both analytical and numerical simulation models. Especially outside peak hours, speed differences are probably one of the most important reasons for congestion. Some main conclusions are that optimal tolls for slow vehicles are higher than those for fast drivers, that the marginal external costs and the optimal tolls for slow drivers are actually decreasing in the equilibrium number of slow drivers, and that “platooning” may become an attractive option especially when the desire for a low speed is caused by a lower value of time.     

Residential mobility and social capital

This paper empirically investigates the role of social capital in households' residential mobility behavior by considering its spatial dimension. This study focuses on a household's social ties with people living nearby, which we refer to as its “local social capital.” Local social capital may deter residential mobility, because the resources stemming from them are location-specific and will be less valuable if a household moves. We conjecture that a household's possession of local social capital has a negative effect on its residential mobility, and this negative effect of local social capital may be stronger on long-distance mobility than on short-distance mobility. Our empirical investigation is based on data from the Panel Study of Income Dynamics. We obtain evidence which is supportive of these conjectures.     

The Pazner-Schmeidler social ordering: A defense

It is shown that the Pazner-Schmeidler social ordering appears as a very natural solution to the problem of defining social preferences over distributions of divisible goods. The paper analyses various ways of deriving this social ordering from minimally egalitarian conditions and informational parsimony requirements.Received: 10 October 2003, Accepted: 4 April 2005, JEL Classification: D63, D71This paper was written while I was a research fellow at the ZiF (Bielefeld), for the project “Procedural Approaches to Conflict Resolution”, and the last version was prepared during my sabbatical year at Nuffield College, Oxford. I thank my hosts for their hospitality. D. Dimitrov and F. Maniquet have provided valuable comments on an earlier draft. I also thank the audience of a seminar at the U. of Montreal. Finally, the comments of three anonymous referees and the Associate Editor have been very helpful.     

Tax Policy Coordination, Vertical Externalities, and Optimal Taxation in a System of Hierarchical Governments

Tax policies of two levels of government (state and federal) with overlapping tax bases are considered. This overlap leads to “vertical” fiscal externalities are considered when several different commodities are in the tax base and the tax bases of the two levels of government may not be identical. When the governments share a tax base, the mix of combined taxes is optimal. With different tax bases, combined taxes are no longer optimal as federal tax rates are adjusted to reflect state public service levels. When grants are available, a welfare-maximizing mix of taxes and public services is obtained.     

The Effect of Public Social Housing on Households' Consumption in France

The French public social housing sector offers rents which are more than 60% below market levels. The “loss” of the public sector landlords, estimated from the rent they could get for their apartments at market prices, amounts to 37 billion Francs per year for the 3 million public social apartments in France. This allows the social sector tenants to consume 10% more housing services and 11% more of other goods. The corresponding surplus gain is around 34 billion Francs. The surplus loss for the collectivity due to these transfers is thus 3 billion Francs, 8% of the transferred sums. As compared to personal housing subsidies, which represent half this amount for the same tenants, the surplus gains are much less concentrated on the poorest part of the population.     

A model of residential change and neighborhood tipping

This paper applies the theory of probabilistic consumer demand to an analysis of residential change at the urban neighborhood scale. By developing the profit maximizing pricing behavior of housing suppliers, it is shown that neighborhood transitions from high income to low income and from white to black can be explained on purely economic grounds without involving prejudicial preferences. The analytical model explains two types of transition. In the first, a neighborhood's social mix changes gradually in response to gradual exogenous changes. In the second, a neighborhood “tips” suddenly in response to similar exogenous changes. The two transitions can occur depending on the characteristics of the demand functions for the two competing groups.     

Linear learning in changing environments

The decision maker receives signals imperfectly correlated with an unobservable state variable and must take actions whose payoffs depend on the state. The state randomly changes over time. In this environment, we examine the performance of simple linear updating rules relative to Bayesian learning. We show that a range of parameters exists for which linear learning results in exactly the same decisions as Bayesian learning, although not in the same beliefs. Outside this parameter range, we use simulations to demonstrate that the consumption level attainable under the optimal linear rule is virtually indistinguishable from the one attainable under Bayes’ rule, although the respective decisions will not always be identical. These results suggest that simple rules of thumb can have an advantage over Bayesian updating when more complex calculations are more costly to perform than less complex ones. We demonstrate the implications of such an advantage in an evolutionary model where agents “learn to learn.”     

Planning in a communal society: A comparison between physical planning in the kibbutz and in the city

This article presents a model of the development of the physical system of the kibbutz as an example of the physical planning of a communal society. A comparison of the kibbutz model with parallel urban models of physical planning in a capitalistic consumer society reveals great similarity between the two. Thus, although the socioeconomic value system of the kibbutz is different from that of the city, the kibbutz may nevertheless be considered a “micro-city” with regard to the solution of physical planning problems. The primary conclusion seems to be that physical planning is less influenced by social system than many planners claim.     

Explaining the democracy deficit in the Arab world

This paper strongly corroborates the widely held claim about the democracy and freedom “deficit” in the Arab world and asks the natural question as to why has the Arab world experienced such a deficit. The estimation results of an extended “modernity” model of democracy (measured by the Polity IV global index) suggest that after controlling for a host of economic, social and historical variables a negative and highly significant Arab dummy effect remains. This suggests, therefore, that the modernization theory does not fully account for the democracy deficit of the Arab world. Controlling for the modernity and other determinants, oil is negatively associated with democracy while the net effect of regional conflicts in the Arab world was negative, suggesting that conflicts in the Arab world promote authoritarianism in contrast with other regions where regional wars have been associated with democratic transitions. Moreover, and very significantly the Arab dummy was no longer significant as a stand alone effect though it remains significant when interacted with regional wars.     

Using DEA to improve the management of congestion in Chinese industries (1981–1997)

Congestion is said to be present when increases in inputs result in output reductions. An “iron rice bowl” policy instituted in China shortly after the revolution led by Mao Tze Tung resulted in congestion that ultimately led to bankruptcy in the textile industry, and near bankruptcy in other industries. A major policy shift away from the “iron rice bowl policy” in 1990 led to massive layoffs and increasing social tensions. Were these massive layoffs necessary? Extensions of data envelopment analysis models effected in the present paper identified inefficiencies in the management of congestion. Using textiles and automobiles for illustration, it is shown how elimination of such managerial inefficiencies could have led to output augmentation without reducing employment. Thus, even in the presence of congestion, it proved to be possible to identify additional (managerial) inefficiencies that provided opportunities for improvement. In the heavily congested textile industry, these output augmentations could have been accompanied by reductions in the amounts of capital used (as an added bonus). In any case, we show how to identify and evaluate new types of efficiency—viz., the efficiency with which needed (or desired) inefficiencies are managed.     

Option hedging theory under transaction costs

The problem of option hedging in the presence of proportional transaction costs can be formulated as a singular stochastic control problem. Hodges and Neuberger [1989. Optimal replication of contingent claims under transactions costs. Review of Futures Markets 8, 222–239] introduced an approach that is based on maximization of the expected utility of terminal wealth. We develop a new algorithm to solve the corresponding singular stochastic control problem and introduce a new approach to option hedging which is closer in spirit to the pathwise replication of Black and Scholes [1973. The pricing of options and corporate liabilities. Journal of Political Economy 81, 637–654]. This new approach is based on minimization of a Black–Scholes-type measure of pathwise risk, defined in terms of a market delta, subject to an upper bound on the hedging cost. We provide an efficient backward induction algorithm for the problem of cost-constrained risk minimization, whose associated singular stochastic control problem is shown to be equivalent to an optimal stopping problem. This algorithm is then modified to solve the singular stochastic control problem associated with utility maximization, which cannot be reduced to an optimal stopping problem. We propose to choose an optimal parameter (risk-aversion coefficient or Lagrange multiplier) in either approach by minimizing the mean squared hedging error and demonstrate that with this “best” choice of the parameter, both approaches have similar performance. We also discuss the different notions of risk in both approaches and propose a volatility adjustment for the risk-minimization approach, which is analogous to that introduced by Zakamouline [2006. European option pricing and hedging with both fixed and proportional transaction costs. Journal of Economic Dynamics and Control 30, 1–25] for the utility maximization approach, thereby providing a unified treatment of both approaches.     

Emotional and interpersonal competencies and leader development

A variety of recent leader development programs have focused on improving leaders' emotional and interpersonal competencies. Decades of leadership research suggest that these “people skills” are crucial for leader effectiveness. This paper reviews the history of these leader development programs as well as research on emotional and interpersonal competencies. Suggestions for grounding leader development programs in sound research on emotional and social competencies, as well as an agenda for future research on the development of leader emotional and interpersonal skills, are provided.     

Management problems in welfare services: the role of the “social entrepreneur” in home-help for the elderly, the Valby case

This article deals with the management problems of the traditional welfare state. The article is based on observations and interviews with employees in the home-help service for the elderly in Valby, a suburb of Copenhagen. On the basis of observations and interviews, and with reference to various relevant studies, the history of home-help in Denmark is examined as a “narrative” in order to uncover critical problems and incidents. In Valby an attempt has been made to promote flexibility and interaction with clients, rather than a standardisation of the services offered. The practical expression of this approach can be seen in the shape of a new entrepreneurial role in management, what I call the social entrepreneur. I discuss briefly how support for this new role can be institutionalised. At the theoretical level, I analyse the Valby case using the theory of flexible specialisation. However, the Valby case illustrates the contextual limitations of this theory and the need to complement the approach with an understanding of management problems at the practical level.     

Asymptotic behaviour of regression pre-test estimators with minimal Bayes risk

Pre-test estimators (PTE) are considered which are optimal under a Bayes risk among PTE with general measurable sets as “regions of significance” for the test statistic t associated with the estimate of a given regression coefficient. Asymptotic and some finite sample results are stated and numerical experiments are commented on.     

Spatial strategies of the “haredi” population in Jerusalem

The purpose of this article is to discuss the strategic behavior—spatial and social—of the “Haredi” (ultra-orthodox) Jewish population. This behavior is associated, in essence, with self-segregation and social isolation accompanied by spatial expansion.

This study deals with these processes in one of the largest concentrations of the ultra-orthodox Jewish community—the northern neighborhoods of Jerusalem. The Jewish ultra-orthodox community is characterized by its special interpretation of Jewish law (halacha) and by its high degree of cohesiveness. It tends to segregate itself from the Israeli population for two main motives. The positive one is the desire to create and maintain “cultural dominance” in a specific area in which the community lives and functions. This includes considerations of scale economies and concentration economies in the provision of the special goods and services which it consumes. The second motive, a negative one, is the desire to avoid some kinds of contacts and interactions with the various groups which do not observe Jewish law according to the orthodox conception. This is done in order to prevent the transfer of secular cultural values of western society into their domain.

The high communal cohesiveness, coupled with high population growth and a strong desire for self-territorial segregation, results in increased pressure on the urban residential space. The fear of social relationship—which may serve as agents for transferring social or cultural values—results in a high degree of intolerance toward the non-religious Israeli population. The contact lines between the two populations have become, therefore, confrontation areas which are characterized by territorial conflicts.

Study of the directions of the territorial expansion suggests what the spatial strategy of the ultraorthodox community is: to gain control of a whole, well-defined urban space in order to maintain cultural dominance in it, while assuring potential directions for expansion in the future. The relationships with the outside, non-religious population is built on a modus operandi principle: i.e. minimal and culturally neutral interactions.

This strategy is carried out through penetration and expansion tactics in a well-known process. These processes present important challenges for planning areas in which ultra-orthodox communities reside.