Economic Democracy: Solution or New Challenge ∗

Abstract Kaleckians and partisans of the capital monopoly approach have argued that additional outlays on unproductive labor increase economic activity under three conditions: investment is sensitive to realized rates of capacity utilization; savings out of wages and salaries are assumed away; prices are fixed by a markup over unit direct costs. The present model examines what happens when the last hypothesis is modified, i.e., when megacorps are assumed to fix prices on the basis of total unit costs, more specifically on the basis of target-return pricing procedures. Because higher costs are shifted on to productive labor, through higher prices and a reduction in their real wages, additional unproductive outlays may have a negative impact on economic activity. It turns out, in addition, that one must carefully distinguish between unproductive labor outlays and unproductive capital outlays when firms are assumed to shift these additional costs to consumers, on the basis of target-return pricing procedures.     

Sport as Business

There is both a popular and academic literature suggesting thatowners of sports teams do not profit maximize. The alternativeformulation entails either win or utility maximization, usuallysubject to a break-even constraint. Another line of economicanalysis holds that team owners do fundamentally profit maximizeor that profit maximization provides a useful benchmark againstwhich to assess actual performance. There has been some empiricalwork attempting to decipher the true objective function of teamowners. These results are inconclusive. Objective functions,however, remain important because they affect both owner behaviourand league performance. In practice, owners' objectives varyby team, league, and country and are strongly affected by howthe team relates to an owner's other assets. The next task formodelling the behaviour and performance of sports leagues isto take fuller account of the diversity of ownership objectiveswithin a given league.     

Analysing post-apartheid poverty trends by geo-type, 1997–2012: The understated role of urbanisation and social grants

This article investigates poverty trends in post-apartheid South Africa with an explicit focus on differences between rural and urban areas. Using nationally representative household survey data from 1997–2012, I first describe changes in population characteristics and household access to different income sources and services, by urban–rural geo-type. Income data are then used to generate poverty statistics, which cast light on divergent trends in rural and urban areas. Next, I employ a poverty decomposition method to further explore some potential reasons why the poverty trends in rural and urban areas have differed. Data from the Afrobarometer are then used to probe how subjective non-monetary welfare has changed over time across geo-types. The evidence from all surveys suggests that the dramatic increase in access to services and social grants in rural areas has played a vital role in poverty reduction.     

Whither the NCAA: Reforming the System

Intercollegiate athletics has long been caught in the ambiguous space between professional and amateur sport. As a hybrid and immensely popular system run by the NCAA, intercollegiate athletics has been critiqued as ethically hypocritical, educationally corrosive, materially exploitative, and economically unsustainable. Economic, political and legal pressure has been building over the last 10 years to reform the system. Such reform will ultimately require a choice between the professional and the amateur models, or a bifurcation whereby a select group of a few dozen schools chooses a professional paradigm while a thousand-plus schools opt for the official NCAA vision of academically centered amateur athletics. After considering the arguments for a market-oriented reform in the direction of professionalism, I argue for an educationally-based reform that is accompanied by a constrained and conditional antitrust exemption for the NCAA or an alternative governing body.     

The optimal diffusion of mitigation options for environmental management

A new direction for evaluating pollution policy is proposed, focused on optimal investment pathways for mitigation capital. The approach allows practitioners to draw directly from key principles in the diffusion literature. A two‐stage, policy‐development framework is introduced. The first stage consists of empirical modelling to assess optimal diffusion pathways for diverse mitigation options. The second involves determining the relative strengths of different policy actions to address diffusion rates or maximum levels of adoption that diverge from optimal levels. The advantages of this new approach are demonstrated in an agri‐environmental context, concerning the off‐site impacts of intensive agriculture on water quality. The viewpoint provided by the novel approach establishes the importance of adoptability – alongside the traditional measures of abatement effectiveness and cost – for mitigation practices in policy assessment. The key role that durable mitigation capital plays in addressing dynamic externalities is demonstrated, alongside the importance of structured diffusion cascades for alternate mitigation options.     

The Influence of Sense of Community on the Perceived Value of Physical Activity: A Cross-Context Analysis

As the physical activity marketplace becomes increasingly diversified, strategies for recruiting and maintaining participants have become especially salient. Accordingly, the current study examined the use of a commonly reported outcome of fitness participation, sense of community (SOC), as an antecedent in generating both value and the perception of progress for participants. Three fitness contexts, CrossFit, traditional group fitness activities, and individual gym goers, were chosen based on varying levels of explicit commitment to community building. SOC was first measured in three contexts to explore differences among settings. After establishing differences between groups, multiple regression analysis was employed to understand the ways in which SOC affected dimensions of value. Results indicated that an explicit commitment to community building was positively associated with higher value of the fitness product and perceptions of individual progress. Strategy and benefits for encouraging the development of SOC in a fitness context are discussed.     

Commentary on Politics of Urbanism: Seeing Like a City by Warren Magnusson

Politics of Urbanism: Seeing Like a City is Warren Magnusson's most recent book. It will find a permanent place as a key contribution in the annals of urban studies, urban politics, political and state theory and international relations, marking a turning point in the way scholars, activists and policymakers see the world. In particular, Magnusson fundamentally questions how we understand and analyse our world from the perspective of the state (the illusion of the sovereign), suggesting we shift instead to the perspective of the city (with its multiplicity of authorities). ‘How welcome should this be?’ is the question that I put to three Canadian colleagues — Roger Keil, Andrew Sancton and Zack Taylor — at the 2011 meeting of the Canadian Political Science Association in Waterloo, ON, Canada. Their answers follow a summary of this rather concise and very readable book that Serena Kataoka and I prepared to introduce those commentaries.     

Responsibility to Punish: Discouraging Free-Riders in Public Goods Games

This study employs a public goods game in which participants can punish each other for free-riding. This paper examines the motivation for punishment behavior when the situation is such that a rational individual will not punish. This paper predicts and finds evidence for the punishment of free-ridership, even when not punishing is the profit-maximizing strategy. Specifically, this paper finds participants will punish more when designated the sole punisher for a group, than when all group members are allowed to punish. This result implies that those individuals who punish for non-rational reasons often free-ride on each others’ punishment. Accordingly, the study suggests individual responsibility is important for ensuring the strength of institutions aimed at punishing selfish behavior.