Public goods and the paying public

This paper proposes a way to undercut anarchist objections to taxation without endorsing an authoritarian justification of government coercion. The argument involves public goods, as understood by economists and others. But I do not analyse options of autonomous prisoners and the like; for, however useful otherwise, these abstractions underestimate the real-world task of sorting out the prerogatives of and limits on ownership. Proceeding more contextually, I come to recommend a shareholder addendum to the doctrine of public goods. This recommendation involves modifying the public goods argument for government coercion to include a contributor-specific compensation provisio, thinking of contributors as investors, and including among the latter those whose investment is in the form not of a market transaction strictly speaking but of sacrifice. To reach this recommendation I constrain the market liberal's limited endorsement of taxation by drawing on the (idealized) postcommunist privatizer's continuing commitment to populism.Edmund F. Byrne is Professor of Philosophy at Indiana University in Indianapolis. His research interests center on policy and practices regarding technology, community, and social welfare. His most recent book isWork, Inc. (Temple University Press, 1990); and he is now writing another tentatively subtitledDemocracy, Civil Society, and Benevolence.     

Towards Enforceable Bans on Illicit Businesses: From Moral Relativism to Human Rights

Many scholars and activists favor banning illicit businesses, especially given that such businesses constitute a large part of the global economy. But these businesses are commonly operated as if they are subject only to the ethical norms their management chooses to recognize, and as a result they sometimes harm innocent people. This can happen in part because there are no effective legal constraints on illicit businesses, and in part because it seems theoretically impossible to dispose definitively of arguments that support moral relativism. Progress is being made, however, towards a “second best” arrangement consisting of widespread institutional agreements regarding ethical norms. This development might eventually enable us to transcend moral relativism in some respects. Indeed, although some business ethicists who examine illicit business practices accept moral relativism, others attempt to surmount it. The latters’ endeavor, I show, is cross-cultural in nature in that it involves businesses that are deemed illicit in at least one but not every culture. I then recall some traditional solutions and their limits: ideological teachings are culture-specific, hence both temporally and spatially limited; legal constraints, though potentially helpful, are too diverse hence often narrow in reach. Especially problematic are defense industry businesses, which are inherently transcultural and, though uniquely harmful, are not effectively banned in any culture. Harm to quality of life (QoL) can, however, be measured. So I recommend institutional support for international human rights tied to QoL data as a workable way to counter moral relativism regarding illicit businesses.     

The impact of governance and transparency on firm investment in Vietnam

A large literature asserts a causal relationship between the quality of economic governance and economic performance. However, attempts to establish such a link at an aggregate level have met with considerable methodological criticism. This paper seeks to overcome this limitation. We match a panel of Vietnamese enterprises from 2006 to 2010 with a unique panel dataset measuring sub‐national economic governance to estimate a relationship between local governance and private investment. We do not find a significant relationship between investment and most traditional forms of governance. However, there is one important exception – transparency, especially the public posting of planning documents, is strongly associated with higher investment across a range of different specifications. Our results have significant implications for policy, given the prevailing theory that changes in the quality of local economic governance will spur improved economic performance.     

The Irish grain trade from the Famine to the First World War

This article presents the first consistent and continuous data series for the Irish grain trade, 1840-1914, showing that imports of wheat and maize rose massively. The resulting three-fold increase in Irish per caput wheat consumption occurred mostly before 1875 and brought it close to British levels by 1914. A consumer price index is constructed for the period, and it reveals that prices declined until 1900 and rose thereafter. Using the two new series (per caput wheat consumption and the price index), the authors estimate a demand function for wheat and show that the per caput increase was due to the rise in the real wage.     

Trade,efficiency, and growth in a cross section of countries

Trade, Efficiency and Growth in a Cross Section of Countries. —Some cross-country studies of the determinants of growth suggest only a modest role for trade policy. This study, measuring trade openness by the rate of growth of the share of exports in GDP, argues that once the possibility of outliers for trade share growth is considered, a close relationship between exports and growth emerges that works mainly through improved efficiency. This relationship proves to be robust to the inclusion of a set of commonly used right-side variables as well as the corresponding import variable.     

Expectations, the business cycle and the Mexican peso crisis

The 1994–95 ‘peso’ crisis did not displaycharacteristics which allow it to be easily captured by traditionalcrisis models. Models based on Minsky's financial fragilityhypothesis offer more persuasive accounts but have been supportedby relatively little direct empirical evidence. This paper providessuch evidence, with particular attention being paid to the roleof domestic financial liberalisation in the process. Minsky'shypotheses about the evolution of expectations over the businesscycle are tracked using business survey data. In addition, crisisindicators are constructed, reflecting the changing vulnerabilityof the economy to shocks. The findings support a Minskyian interpretationof the crisis.     

Rent seeking and the value of time

This paper focuses on the question of how rivals’ rent-seeking expenditures and investment expenditures are affected by the temporal dimension of those cash flows as well as the timing of the cash flow of monopoly rents. The paper applies methods from statistical reliability theory to derive five propositions establishing the conditions that must be satisfied if the rivals apportion their rent seeking and investment expenditures to maximize their certainty equivalents of the monopoly rent. The propositions explicate the responses of the rivals to changes in economic parameters characterizing the rent-seeking contest such as a change in the duration of the monopoly rent cash flow or a change in the number of rivals.