The Nature of the State and the State of Nature: a Comment on Grady & McGuire's Paper

In 'The Nature of Constitutions', Mark Grady & Michael McGuire provide a model of the evolution and purposes of constitutions as arising to minimize appropriation by dominants of subordinates. This Comment builds on Grady & McGuire's article in three ways. First, it supplements their analysis by operationalizing a model of constitutional evolution that views constitutions as arising out of the conflict of competing high-ranking individuals to preserve their own authority. From this clash of self-interest of dominant individuals, constitutions are born. This predicts that constitutions will not simply tame all forms of appropriation, but will also hard-wire some forms of appropriation behavior into the permanent constitutional structure. Second, it examines the American constitution in light of this model to show how that constitution reflects the mixture of appropriation and appropriation-taming behavior. Third, this Comment argues that the breakdown of constitutionalism in the United States this century can be explained by a failure to fully appreciate the purposes of constitutionalism in a biological framework.     

Automobile Safety Regulation and the Incentive to Drive Recklessly: Evidence from NASCAR

When safety regulation makes automobiles safer, drivers may drive more recklessly, partially or completely offsetting effects on the overall level of safety. Evidence of these offsetting effects has been hard to find, however, primarily because of the aggregate nature of accident data. In this paper we explore how changes in the safety of automobiles used in the National Association for Stock Car Auto Racing (NASCAR) has altered the incentive of drivers to drive recklessly. This unique data set allows more accurate and objective measurement of the necessary variables to test for these effects at a microlevel. Our results strongly support the presence of these offsetting behavioral effects.     

Options and sunspots in a simple monetary economy

Summary. We study sunspot immunity in a dynamic monetary economy in which consumers are allowed to trade put and call option contracts on the general price level. We define the concept of strong sunspot immunity to characterize economies that have no sunspot equilibria regardless of the number of extrinsic states and their probabilities of occurrence. We show that a small number of option contracts can make an economy strongly sunspot immune. In addition, we demonstrate how asset re-trading opportunities, and the associated capital gains and losses, reduce the number of options needed for this result to obtain. Received: August 13, 1996; revised version: January 20, 1997     

On Sharing NATO Defence Burdens in the 1990s and Beyond

This article investigates NATO burden sharing in the 1990s in light of strategic, technological, political and membership changes. Both an ability‐to‐pay and a benefits‐received analysis of burden sharing are conducted. During 1990–99, there is no evidence of disproportionate burden sharing, where the large allies shoulder the burdens of the small. Nevertheless, the theoretical model predicts that this disproportionality will plague NATO in the near future. Thus far, there is still a significant concordance between benefits received and defence burdens carried. When alternative expansion scenarios are studied, the extent of disproportionality of burden sharing increases as NATO grows in size. A broader security burden‐sharing measure is devised and tested; based on this broader measure, there is still no disproportionality evident in the recent past.     

Do Asset Fire Sales Exist? An Empirical Investigation of Commercial Aircraft Transactions

This paper uses commercial aircraft transactions to determine whether capital constraints cause firms to liquidate assets at discounts to fundamental values. Results indicate that financially constrained airlines receive lower prices than their unconstrained rivals when selling used narrow-body aircraft. Capital constrained airlines are also more likely to sell used aircraft to industry outsiders, especially during market downturns. Further evidence that capital constraints affect liquidation prices is provided by airlines' asset acquisition activity. Unconstrained airlines significantly increase buying activity when aircraft prices are depressed; this pattern is not observed for financially constrained airlines.     

Passive Firm Learning and Employment Projection Error

This paper analyzes establishment error in estimating employment targets in business startups and expansions. Passive firm learning models provide a testable hypothesis that, other things being equal, old establishments more accurately predict future employment targets than young businesses. Empirical evidence from 442 Ohio establishments implies that an increase of ten years in establishment age is associated with a decrease in employment projection error rate of between 11 and 13 percentage points.     

Empathetic responses to advertising: Testing a network of antecedents and consequences

It has been proposed conceptually that viewers respond to certain advertisements via Empathetic Responses; that is, by feeling with depicted characters. Such deep viewer engagement is especially valued in today’s media environment and is central to dramatic advertising strategies. Nevertheless, Empathetic Responses remain relatively understudied. We situate Empathetic Responses within a model comprising high-level personality domains (within the “Big Five”), lower-level personality facets (multidimensional Trait Empathy), and Perceived Ad Vividness, all as antecedents, as well as consequent Ad-Evoked Feelings. Our findings clarify the composition and function of Empathetic Responses, adding to both basic and applied understandings.

Towards a better understanding of the financial donor: an examination of donor behaviour in terms of value structure and demographics

While marketing academics have long advocated the application of marketing principles by not-for-profit organisations, a review of the literature suggests that attempts to segment financial donors have primarily concentrated on demographic variables. Recently, there have been moves to gain a better understanding of more psychographic influences on individuals' propensity to contribute to charities. It is proposed that the concept of values offers potential for enhancing this understanding. Findings confirm some earlier studies in that demographics such as age, education and household income significantly discriminate between heavy and light donors. Additionally, ten of the initial 56 values tested contribute to the overall discriminant model obtained. The profiles obtained suggest that distinct promotional strategies, with emphasis on different reasons for donating, may appeal to the two groups. Copyright © 1999 Henry Stewart Publications     

Buchanan clubs

This article evaluates the contribution of James M. Buchanan’s theory of clubs. At the outset, the article distinguishes club goods from pure public goods. Next, the article distills the basic mathematical structure of Buchanan’s treatment of clubs. This is followed by some key variants of Buchanan clubs. More general formulations of club theory are also addressed. To demonstrate the wide-ranging importance of Buchanan clubs, the article indicates varied applications of club theory. The article’s message is that club theory remains highly relevant today.