Behavioral Economics and Political Economy

The past and future impact of behavioral economics in the field of political economy is assessed. It is argued that politician leaders operate in an intensely competition environment where the framework of rational choice is compelling. In contrast, rational choice is less compelling when studying the behavior of voters in mass elections where the consequences of each individual’s choices are negligible. A discussion of the literature on why voters bother to vote and on the choices voters make when casting their ballots illustrates the limits of explanations based on rational decision-makers and the potential contribution of behavioral research to the study of political economy.

Comparing the Growth of the Prime Numbers to the Natural Numbers

We define a new method of measuring the rate of divergence for an increasing positive sequence of integers. We introduce the growth function for such a sequence and its associated growth limit. We use these tools to study the divergence rate for the natural numbers, polynomial and exponential-type sequences, and the prime numbers. We conclude with a number of open questions concerning general properties and characterizations of growth functions and the set of possible growth limits

Income inequality and welfare spending: A disaggregated analysis

The welfare state is generally viewed as either providing redistribution from rich to poor or as providing publicly-financed insurance. Both views are incomplete. Welfare policies provide both insurance and redistribution in varying amounts, depending on the design of the policy. We explore the political consequences of the mix of redistribution and insurance in the context of studying the impact of income inequality on expenditures in different categories of welfare spending in advanced industrial socieities from 1980-1995. We find that spending on pensions, health care, family benefits, poverty alleviation and housing subsidies is largely uncorrelated with income inequality, but that spending on income replacement programs such as unemployment insurance, sickness pay, occupational illness and disability are signinficantly higher in countries with more egalitarian income distributions. We show that this pattern is exactly what a theory of political support for redistributive social insurance programs would predict

Does the logic of collective action explain the logic of corporatism?

Mancur Olson's Logic of Collective Action has provided the dominant framework for understanding the impact of encompassing unions and employers confederations on wage-setting in Western Europe. In particular, scholars have drawn upon Olson's writing to descripe corporatism as a means for attaining the collective goods of low unemployment and low inflation in highly unionized labor markets. The strongest impact of corporatist institutions in the labor market, however, was to generate greater wage equality rather than superior macroeconomic performance. To understand the most important impact of corporatist institutions, a new framework that emphasizes the effect of wage-setting institutions on the distribution of wages and salaries is needed. In this paper, we present one component of such a framework with a model that illustrates how both employers and unions might gain by central agreements that reduce wage inequality relative to the equilibrium wage distribution with decentralized wage-setting

A Galactic Bar to Beyond the Solar Circle and its Relevance for Microlensing

The Galactic kinematics of Mira variables have been studied using infrared photometry, radial velocities, and Hipparcos parallaxes and proper motions. For Miras in the period range 145 to 200 days (probably corresponding to [Fe/H] in the range -0.8 to -1.3) the major axes of the stellar orbits are concentrated in the first quadrant of Galactic longitude. This is interpreted as a continuation of the bar-like structure of the Galactic Bulge out to the solar circle and beyond.Comment: 6 pages, 2 figures. To be published in: Microlensing 2000. ASP Conference Series, Eds. J W Menzies, P Sacket

Militarization and social development in the Third World

In this study we integrated the modernization and dependency theories of development to suggest the ways whereby militarization can affect development. We examined the effects of three components of militarization highlighted in these theories on the social development of ninety-two developing countries. Overall, our findings support the dependency theory's emphasis on the detrimental impact of international trade on disadvantaged nations. There is a significant negative correlation between arms import and social development. Arms export and indigenous spending are correlated with social development in the expected directions but their beta coefficients are not significant. The diverse ways these three aspects of militarization have been shown to affect social development help to explain some of the conflicting findings in the literature and point to the need to study these variables in their disaggregated form.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/69141/2/10.1177_144078339503100105.pd