Quasimarket failure

The efficiency of “quasimarkets”—decentralized public goods provision subjected to Tiebout competition—is a staple of public choice conventional wisdom. Yet in the 1990s a countermovement in political economy called “neoconsolidationism” began to challenge this wisdom. The neoconsolidationists use the logic of government failure central to public choice economics to argue that quasimarkets fail and that jurisdictional consolidation is a superior way to supply public goods and services in metropolitan areas. Public choice scholars have largely ignored the neoconsolidationists’ challenge. This paper brings that challenge to public choice scholars’ attention with the hope of encouraging responses. It also offers some preliminary thoughts about the directions such responses might take.Public Goods; Quasimarkets

Short-term Response of Soil Iron to Nitrate Addition

The inhibition of soil Fe(III) reduction by fertilizer NO3 − applications is complex and not completely understood. This inhibition is important to study because of the potential impact on soil physicochemical properties. We investigated the effect of adding NO3 − to a moderately well-drained agricultural soil (Sadler silt loam) under Fe(III)-reducing (anoxic) conditions. Stirred-batch experiments were conducted where NO3 − was added (0.05 and 1 mM) to anoxic slurries and changes in dissolved Fe(II) and Fe(III), oxalate-extractable Fe(II), and dissolved NO3 − were monitored as a function of time. Addition of 1 mM NO3 − inhibited Fe(II) production sharply with reaction time, from 10% after 1 h to 85% after 24 h. The duration of inhibition in Fe(II) production was closely related to the presence of available NO3 −, suggesting preferential use of NO3 − by nitrate reductase enzyme. Active nitrate reductase was confirmed by the fivefold decline in NO3 − reduction rates in the presence of tungstate (WO4 2−), a well-known inhibitor of nitrate reductase. In addition, NO3 −–dependent Fe(II) oxidation was observed to contribute to the inhibition in Fe(II) production. This finding was attributed to a combination of chemical reoxidation of Fe(II) by NO2 −– and NO3 −–dependent Fe(II) oxidation by autotrophic bacteria. These two processes became more important at a greater initial oxalate-Fe(II)/NO3 − concentration ratio. The inhibitory effects in Fe(II) production were short-term in the sense that once NO3 − was depleted, Fe(II) production resumed. These results underscore the complexity of the coupled N–Fe redox system in soils

Nitrite Reduction by Siderite

Nitrate-dependent Fe(II) oxidation is an important process in the inhibition of soil Fe(III) reduction, yet the mechanisms are poorly understood. One proposed pathway includes chemical reoxidation of mineral forms of Fe(II) such as siderite [FeCO3(s)] by NO2 −. Accordingly, the objective of this study was to investigate the reactivity of FeCO3(s) with NO2 −. Stirred-batch reactions were performed in an anoxic chamber across a range of pH values (5.5, 6, 6.5, and 7.9), initial FeCO3(s) concentrations (5, 10, and 15 g L−1) and initial NO2 − concentrations (0.83–9.3 mmol L−1) for kinetic and stoichiometric determinations. Solid-phase products were characterized using x-ray diffraction (XRD). Siderite abiotically reduced NO2 − to N2O. During the process, FeCO3(s) was oxidized to lepidocrocite [γ-FeOOH(s)] based on the appearance of XRD peaks located at 0.624, 0.329, and 0.247 nm. The rate of NO2 − reduction was first order in total NO2 − concentration and FeCO3(s), with a second-order rate coefficient (k) of 0.55 ± 0.05 M−1 h−1 at pH 5.5 and 25°C. The reaction was proton assisted and k values increased threefold as pH decreased from 7.9 to 5.5. The influence of pH on NO2 − reduction was rationalized in terms of the availability of FeCO3(s) surface sites (\u3eFeHCO3 0, \u3eFeOH2 +, and \u3eCO3Fe+) and HNO2 concentration. These findings indicate that if FeCO3(s) is present in an Fe(III)-reducing soil where fertilizer NO3 − is applied, it can participate in secondary chemical reactions with NO2 − and lead to an inhibition in Fe(III) reduction. This process is relevant in soil environments where NO3 −– and Fe(III)-reducing zones overlap or across aerobic–anaerobic interfaces

The debt-inflation cycle and the global financial crisis

Writing over 230 years ago, Adam Smith noted the 'juggling trick' whereby governments hide the extent of their public debt through 'pretend payments.' As the fiscal crises around the world illustrate, this juggling trick has run its course. This paper explores the relevance of Smith’s juggling trick in the context of dominant fiscal and monetary policies. It is argued that government spending intended to maintain stability, avoid deflation, and stimulate the economy leads to significant increases in the public debt. This public debt is sustainable for a period of time and can be serviced through 'pretend payments' such as subsequent borrowing or the printing of money. However, at some point borrowing is no longer a feasible option as the state's creditworthiness erodes. The only recourse is the monetarization of the debt which is also unsustainable due to the threat of hyperinflation