Why Do Small States Receive More Federal Money? U.S. Senate Representation and the Allocation of Federal Budget

Empirical research on the geographic distribution of U.S. federal spending shows that small states receive disproportionately more dollars per capita. This evidence, often regarded as the consequence of Senate malapportionment, in reality conflates the effects of state population size with that of state population growth. Analyzing outlays for the period 1978–2002, this study shows that properly controlling for population dynamics provides more reasonable estimates of small‐state advantage and solves a number of puzzling peculiarities of previous research. We also show that states with fast‐growing population loose federal spending to the advantage of slow‐growing ones independently of whether they are large or small. The two population effects vary substantially across spending programs. Small states enjoy some advantage in defense spending, whereas fast‐growing ones are penalized in the allocation of federal grants, particularly those administered by formulas limiting budgetary adjustments. Hence, a large part of the inverse relationship between spending and population appears to be driven by mechanisms of budgetary inertia, which are compatible with incrementalist theories of budget allocation.     

The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain

The Nature and Causes of Intra-Industry Trade: Back to the Comparative Advantage Explanations? The Case of Spain. — The aim of this paper is to contribute empirically to the knowledge of the nature and causes of intra-industry trade (IIT), distinguishing between vertical and horizontal IIT. To this end, we estimate a more general empirical model than those used in previous studies, by introducing simultaneously both national and industry-specific variables which include measures for human and technological capital endowments. The results show that vertical IIT is positively related to industry technological intensity and differences in human and technological capital endowments between countries. On the other hand, horizontal IIT is explained by the traditional monopolistic competition model.     

Preference for Landings’ Smoothing and Risk of Collapse in Optimal Fishery Policies: The Ibero-Atlantic Sardine Fishery

Several world fish stocks are being explored at unsustainable levels and require management plans to rebuild stock abundance. Defining a management plan is, however, a complex task that entails multidisciplinary work. In fact, while it requires solid scientific knowledge of fish stocks, the inclusion of economic and social objectives is crucial to a successful management implementation. In this paper we develop an age-structured bioeconomic model where the objective function is modified to accommodate preferences from different stakeholders. In particular, we consider important characteristics that a management plan should take into account: profit maximization, fishermen’s preference for reducing landings’ fluctuations and risk of fishery collapse. Modeling preferences for reducing landings’ fluctuations is accomplished by defining a utility function with aversion to intertemporal income fluctuations. Building upon biology literature, we model precautionary concerns by incorporating a probability of collapse that depends on current spawning biomass. We illustrate how this framework is able to assist in the analysis and design of harvest control rules applying it to the Ibero-Atlantic sardine stock.     

ON THE HIERARCHY OF SOME QUALITATIVE STRUCTURES IN THE VON NEUMANN AND RELATED MODELS

In this paper we collect some old and new qualitative-structural properties on the input and output matrices involved in the classical von Neumann model, properties relevant, from the formal and/or economic point of view, in the study of the equilibria of the said model. It is established the hierarchy, i.e. the relations of inclusion, partial overlapping and disjunction, among these properties, which permits to amend some current slips in the analysis of the von Neumann model (one due to von Neumann himself). The results obtained can be fitted to other production and exchange multisectorial models.     

Soil-specific agro-ecological strategies for sustainable land use – A case study by using MicroLEIS DSS in Sevilla Province (Spain)

To reverse the negative environmental impacts of agriculture, a land evaluation decision support system (DSS) known as MicroLEIS-DSS was used to design the most sustainable land use and management practices for selected Mediterranean benchmark sites in Sevilla Province, Southern Spain. This DSS is based on the multifunctional evaluation of soil quality, using input data collected in standard soil surveys, and with particular reference to the peculiarities of the Mediterranean region. Specific agro-ecological strategies to prevent soil degradation in the benchmark sites were designed within two major topics: (i) strategies related to land use planning at a regional level: segregation of agricultural lands, restoration of marginal areas, diversification of crop rotation, and identification of vulnerability areas; and (ii) those related to land management planning at a farm level: organic matter restoration, formulation of tillage practices and workability timing, optimum machinery use, and input rationalization. The predicted results of applying the 12 agro-ecological land evaluation model constituents of MicroLEIS DSS are presented and discussed for each application site. The main conclusion of this paper is that using soil type information in decision-making is at the heart for sustainable use and management of agricultural land. This agro-ecological approach can be especially useful when formulating soil-specific agricultural practices to reverse environmental degradation, based on the spatial variability of soils and related resources.     

Public–Private Partnerships for Biosecurity: An Opportunity for Risk Sharing

Private efforts to prevent and control biological pests and infectious diseases can be a public good, and so incentivising private biosecurity management actions is both desirable and problematic. Compensation contracts can encourage biosecurity efforts, provide support against the collapse of economic sectors, and create an insurance network. We conceptualise a novel biosecurity instrument relying on formal compensation private–public partnerships using contract theory. Our framework explains how the public sector can harness increased private biosecurity measures by making payments to agents which depend both on their performance and that of the other stakeholders. Doing so allows the government to spread the risk across signatory agents. The framework also improves our understanding of government involvement due to public effects of biosecurity, influenced by the private agents’ capacity to derive private benefit from their own efforts on monitoring and control. Lastly, these theoretical results provide a foundation for further study of contractual responsibility sharing for pest management.     

Looking backward to look forward: water use and economic growth from a long-term perspective

Recent research has examined the relationship between natural resources and economic growth. Considered vitally important, not only for humanity’s well-being but also for the integrity of the ecosystem, the relationship between water use and economic growth has nevertheless traditionally attracted little attention by analysts. This article studies water use trends from 1900 to 2000 throughout the world and their relationship to the main determinants of economic growth. To do this, we first analyse water use trajectories. Second, to proceed with the determinants of water use, we reformulate the Ehrlich and Holdren’s impact, population, affluence, technology (IPAT) equation (1971), decomposing water use trends into changes in economic demands and in water use intensity on the basis of a decomposition analysis. Finally, a simple scenario analysis is conducted, to project future water use trends under different economic, demographic and technological assumptions.

?The empirical evidence shows that economic and population growth have been crucial in explaining the increase in water use over the past 100 years, with significant regional differences. Nevertheless, the decline in water use intensity has been responsible for a significant reduction in the growth of total water use.