Slovakia's Surge: The New System's Impact on Fiscal Decentralisation

Slovakia's transition history long paralleled that of the Czech Republic, but the former adopted bold new reforms early in this decade. This article is a comparative treatment of fiscal decentralisation since 1993 and more recent reforms of public administration, the two efforts representing the foundation of the New System. Czech experience is invoked simply to provide an appropriate benchmark for the evaluation of Slovakia's New System introduced in 2004, including the 19% ‘flat tax’ and other striking measures in local public finance.

The second focus of the article is on the macroeconomic impact of the New System. It is too early to perceive what its long-term effects will be, so this treatment is more tentative. But because one would like to know whether Slovakia's return to an economic growth path is actually a result of the New System and whether this recent growth will persist, these issues are given some consideration.     

More is More: Some Economics of Distinctively-Named White Kids

Using data covering every child born in California from 1961 to 2000, Fryer and Levitt (2004) find that in the 1960s, the differences in name choices by blacks and whites were relatively small, but that a profound shift began among blacks in the mid-1970s toward more distinctively black names, especially among blacks in racially isolated neighborhoods. As an extension of Fryer and Levitt (2004), this study uses data on the names of about 1,300 white children born over the four-year period from 1997 to 2000 and living in a segment of a Metropolitan Statistical Area in the Deep South, and finds that use of combination first names—largely based on combinations of single names included among the names of high-end white children from Fryer and Levitt (2004) and Levitt and Dubner (2005)—is significantly more prevalent among high-end white children than it is among low-end white children. Unlike the data described in Fryer and Levitt (2004), which support an Identity Model wherein distinctively black names result from the Black Power movement that encouraged blacks to “accentuate and affirm black culture and fight the claims of black inferiority,” the present study suggests that high-end parents may use the combination first name convention to increase the likelihood of the child’s future success in various partnership markets, such as dating, marriage and business-partnership markets.     

Promotion tournaments in market equilibrium

This paper studies how promotion tournaments motivate workers to accumulate human capital when wages are constrained by outside labor markets. Patient firms can retain some control over tournament prizes through a relational contract, but if the firms are competitive, full efficiency does not obtain in equilibrium even for discount factors arbitrarily close to one. Full efficiency, however, may be feasible in firms with superior technologies; thus, technological efficiency breeds incentive efficiency. The paper also shows that a wage floor leads to insufficient human capital investment in competitive firms, but could lead to excessive investment in technologically superior firms.     

When nutritional guidelines and life collide: family fruit and vegetable socialisation practices in low socioeconomic communities

Abstract

Parents play a critical role in promoting fruit and vegetable consumption, for eating patterns established early in life tend to persist into adulthood. Despite this, the factors that facilitate or inhibit parents’ capacity to socialise fruit and vegetable consumption into their children’s daily diets remain poorly defined. Thirty-eight semi-structured interviews with residents, allied healthcare professionals, community leaders, community programme leaders and a local government leader living or working in two low socioeconomic suburbs were consequently conducted to ascertain factors exogenous and endogenous to the family unit that shaped parental food socialisation practices. Budgetary and time constraints emerged as exogenous factors that constrained fruit and vegetable socialisation. Constraining effects were also found for a range of endogenous factors, including commensal experiences, children’s food fussiness and the feeding styles employed by parents. As such, while many caregivers may wish to socialise fruit and vegetable consumption into their children’s daily diets, their capacity to do so is often inhibited by factors beyond their volitional control. Failure to take heed of these factors could therefore result in the development of social marketing campaigns that are ineffective at best or give rise to unintentionally harmful outcomes at worst.     

Risk-based decision analysis in support of precautionary policies

A decision-analytic model for avoiding a risky activity is presented. The model considers the benefit and cost of avoiding the activity, the probability that the activity is unsafe, and scientific tests or studies that could be conducted to revise the probability that the activity is unsafe. For a single decision maker, thresholds are identified for his or her current subjective probability that the activity is unsafe. These thresholds indicate whether the preferred course of action is avoiding the activity without further study, engaging in the activity without further study, or conducting a test or research programme to obtain additional information and following the result. When these thresholds are low, precautionary action is more likely to be warranted. When there are multiple stakeholders, differences in their perceptions of the benefit and cost of avoidance and differences in their perceptions of the accuracy of the additional information provided by the test or research programme combine to create differences in their decision thresholds. Thus, the model allows for the rational expression of differences among parties in a way that highlights disagreements and possible paths to conflict resolution. The model is illustrated with an application to phytosanitary standards in international trade and examined in terms of recent empirical research on lay perceptions of risks, benefits, and trust. Further research is suggested to improve the elicitation of model components, as a way of fostering the legitimate application of risk-based decision analysis in precautionary policy making.     

INFERENCE FOR DOMINANCE RELATIONS

The use of partial orders has been popularized as a way to conduct social evaluations using only minimal normative assumptions. Generically, this process involves comparing continuously indexed curves that are uniquely determined by the cumulative distributions of the individual attributes under study. In the literature on income poverty and inequality, for example, pairwise comparisons of entire income distributions and their respective Lorenz curves are routinely performed in order to characterize rankings of poverty, inequality, and welfare. In this article, we focus on the inferential problem that arises whenever such comparisons are made in the absence of census data. Statistical inference in these situations is particularly complex due to the fact that comparing curves invariably gives rise to four possibilities: the true population curves are equal, the first curve lies below the second, the second lies below the first, or the curves cross. To address this four‐decision problem, we introduce a two‐stage test that has good power and fine control over misclassification error rates.     

Public Reactions to Policy Recommendations from the Banff-Bow Valley Study: A Longitudinal Assessment

The Banff-Bow Valley Study (BBVS), a two-year, $2.4 million project designed to formulate guidelines for the future of a major National Parks region in the Canadian Rockies, provided a comprehensive set of over 500 policy recommendations for enhancing ecological integrity and managing sustainable tourism in this popular, environmentally sensitive destination (Page et al., 1996). For these recommendations to be implemented effectively, support from a broad range of stakeholders in the Canadian citizenry is essential. Surprisingly, the BBVS itself did not explore public attitudes towards its final recommendations. In an attempt to overcome this shortcoming, the present authors undertook to assess the degree of public support for the major recomm endations of the BBVS. The total assessment consisted of a two-phase longitudinal study. Phase 1 was conducted in 1996, following the release of the BBVS recommendations. Phase 2, which sought to verify the stability of the initial results, was conducted in 2000. W hile some shifts in public support were identified, the most significant findings of Phase 1 were verified. The total study identified those recommendations most likely to be accepted or rejected by Canadians.     

Digitization of heritage collections as indicator of innovation

Heritage institutions house cultural and research content, which is the key source to stimulate soft innovation. Despite the potential, heritage collections are mostly inaccessible via digital mediums. We analyse the macro, meso and micro conditions of heritage organizations across Europe to identify the key determinants that foster soft innovation as reflected by the share of collection digitization and online publication. We find that organizations respond positively to an environment of high consumer digital literacy and sustainable resource allocation that enables slack, skilled staff and long-term strategic planning. Innovation is thus, in fact, enhanced by digital literacy from both producers and consumers.