Asymmetric Punishment as an Instrument of Corruption Control

The control of bribery is a policy objective in many developing countries. It has been argued that asymmetric punishments could reduce bribery by incentivizing whistle‐blowing. This paper investigates the role played by asymmetric punishment in a setting where bribe size is determined by Nash bargaining, detection is costly, and detection rates are set endogenously. First, if whistle‐blowing is infeasible, the symmetry properties of punishment are irrelevant to bribery deterrence but not to bribe size. Bribery disappears if expected penalties are sufficiently high; otherwise, bribe sizes rise as expected penalties rise. Second, when the bribe‐giver may whistle‐blow, a switch from symmetric to asymmetric punishment eliminates bribery only if whistle‐blowing is cheap and the stakes are low. When bribery persists, multiple bribe sizes could survive in equilibrium. The paper derives parameter values under which each of these outcomes occurs, and discusses implications for welfare and the design of policy.     

Negotiating Acts of Citizenship in an Era of Neoliberal Reform: The Game of School Closures

In Ontario, the landscape of public education has changed quite rapidly during the past decade. Critics argue that neoliberal policies concerning privatization and marketization in the education system have produced different outcomes for different groups. One of the most sensitive issues during these years has been the closure of schools. Over three years (1999–2002) nearly 200 schools were closed in Ontario. These many changes, however, have not gone uncontested and communities have adapted to these circumstances in different ways. Acts of citizenship range from coping independently to challenging these changes collectively. This article examines the failures and successes of various acts of citizenship in challenging neoliberal governmental rationalities. More specifically, it traces the difficult process of school closure negotiations using examples from Toronto. Based primarily on participant observation carried out over a year, it examines the politics of the community consultation process among a heterogeneous ‘family of schools’ amid mixed incomes and varying capacities and needs. Through these case studies it explores whether these acts are inclusionary or exclusionary, homogenizing or diversifying, positive or negative. The evolution of the planning process is examined at three different periods (1998, 1999, 2000), demonstrating the slow and steady construction, advancement and legitimization of neoliberal policy, and correspondingly the spaces and citizens it makes and unmakes through this process. The article concludes with a framework of collective action highlighting relational aspects of citizenship that lead to positive or negative consequences for civil society.     

Directed Networks with Spillovers

We study noncooperative network formation in two types of directed networks. In the first type, called the model with global spillovers, the payoff of a player depends on the number of links she forms as well as the total number of links formed by all other players. In the second type, called the model with local spillovers, the payoff of a player depends on the number of links she forms and the total number of links formed by her immediate neighbors, as well as the number of links formed by players outside her neighborhood. For both classes of games we investigate the existence of pure strategy Nash equilibria and characterize the Nash networks under a number of different second order conditions on the payoff function.     

Director–Liability–Reduction Laws and Conditional Conservatism

We study nonofficer directors’ influence on the accounting conservatism of U.S. public firms. Between 1986 and 2002, all 50 U.S. states enacted laws that limited nonofficer directors’ litigation risk but often left officer directors’ litigation risk unchanged. We find that conditional conservatism decreased after the staggered enactments of the laws, which we attribute to less nonofficer director monitoring of financial reporting in affected firms. Conservatism fell less when shareholder or debtholder power was high, consistent with major stakeholders moderating the influence of nonofficer directors. We verify that our results stem from reductions in the asymmetric timeliness of accruals and, specifically, its current assets components. We also show that affected firms switched away from Big N auditors more often, which reduced these firms’ commitment to conservative financial reports.     

Class and the Politics of Participatory Rural Transformation in West Bengal: An Alternative to World Bank Orthodoxy

Based on a primary field survey and secondary sources of information, this study analyzes the West Bengal experience of participatory rural transformation in relation to the changing class structure in a differentiated rural economy, the rise in class-consciousness among the rural poor and the participation of different classes in the political process of decision-making. Utsa Patnaik's (1987 ) labour exploitation criterion is used in order to rank rural households in class terms, alongside the standard acreage groupings. This study strongly refutes the neo-liberal (World Bank) idea of social capital and civil society as sources of 'people's participation'. It is argued that 'people's participation' is a meaningless concept, since the 'people' as a category includes different classes with conflicting interests. Though subordinate classes in West Bengal have achieved a higher level of class consciousness than in the past, and have resisted extra economic coercion, and while their political participation has risen, their involvement at the grass roots level of administrative decision-making is very weak. Panchayat Raj has so far failed to initiate a second phase of institutional reform in West Bengal, encompassing education, gender justice and above all the co-operative movement. This partial failure is the outcome of short-term electoral benefit being given priority over and so undermining class struggle.     

Union Growth in Malaysia and Singapore

This paper examines the determinants of trade union membership growth in Malaysia and Singapore for the period 1965–1983 and finds that the standard Western-based aggregate model of trade union growth applies to these countries. However, regression results suggest that the model's key variables have differential effects in the two countries.