Electronic Filing, Tax Preparers, and Participation in the Earned Income Tax Credit

In 2002 more than 18 million low-income individual taxpayers received the Earned Income Tax Credit (EITC). Despite its size, non-participation in this program is a concern and substantial effort is devoted by the IRS, local governments and many non-profits to address it. Most of the tax returns for EITC recipients are filed electronically by paid tax preparers who often charge significant fees for their services. Using variation across states in the introduction of state electronic filing programs, we show that the introduction of electronic filing had a significant effect on participation in the EITC. Our results are robust to accounting for other welfare, EITC and IRS reforms introduced during the same period. We suggest that this effect is due to the impact that electronic filing opportunities had on the tax preparation industry, therefore providing an example of how a market-based approach can be effective in addressing the problem of program non-participation.

The Guarantees of Freedom

Hayek (1960) distinguishes the institutions of English freedom, which guarantee the independence of judges from political interference in the administration of justice, from those of American freedom, which allow judges to restrain law-making powers of the sovereign through constitutional review. We create a data base of constitutional rules in 71 countries that reflect these institutions of English and American freedom, and ask whether these rules predict economic and political freedom in a cross-section of countries. We find that the English institutions of judicial independence are strong predictors of economic freedom and weaker predictors of political freedom. The American institutions of checks and balances are strong predictors of political but not of economic freedom. Judicial independence explains half of the positive effect of common law legal origin on measures of economic freedom.

From local to global: extrapolating experiments

The use of randomised control trials (RCTs) in evaluating the design and efficacy of policies has exploded in the last decade. New papers appear every week. But while RCTs are quickly becoming the gold standard for impact evaluations in international development and aid interventions, questions persist about what the results of an RCT in one context can tell us about the probable results of similar programme implemented in another context. Indeed, such questions are not unique to RCT’s but apply to the full set of empirical tools that economists apply in estimating policy impacts and outcomes

The Guarantees of Freedom

Hayek (1960) distinguishes the institutions of English freedom, which guarantee the independence of judges from political interference in the administration of justice, from those of American freedom, which allow judges to restrain law-making powers of the sovereign through constitutional review. We create a data base of constitutional rules in 71 countries that reflect these institutions of English and American freedom, and ask whether these rules predict economic and political freedom in a cross-section of countries. We find that the English institutions of judicial independence are strong predictors of economic freedom and weaker predictors of political freedom. The American institutions of checks and balances are strong predictors of political but not of economic freedom. Judicial independence explains half of the positive effect of common law legal origin on measures of economic freedom.

Whither Democracy? The Politics of Dejection in the 2000 Romanian Elections

This paper analyzes the reasons for the clear victory of the leftist Party of Social Democracy (PDSR) and its presidential candidate, Ion Iliescu in the 2000 Romanian elections, as well as the strong showing of the extremist Greater Romania Party (PRM) and its leader Corneliu Vadim Tudor. Based on an analysis of voter surveys, the paper argues that the rise of the extreme right does not reflect a radicalization of the Romanian electorate but rather a protest vote against the perceived corruption and incompetence of the country's political elite in the last decade. The paper concludes with implications for the future of democracy in the former communist countries in and around the region

Dictators and their subjects: authoritarian attitudinal effects and legacies

This introductory essay outlines the key themes of the special issue on the long-term impact of autocracies on the political attitudes and behavior of their subjects. Here, we highlight several important areas of theoretical and empirical refinements, which can provide a more nuanced picture of the process through which authoritarian attitudinal legacies emerge and persist. First, we define the nature of attitudinal legacies and their driving mechanisms, developing a framework of competing socialization. Second, we use the competing socialization framework to explain two potential sources of heterogeneity in attitudinal and behavioral legacies: varieties of institutional features of authoritarian regimes, which affect the nature of regime socialization efforts; and variations across different subgroups of (post-)authoritarian citizens, which reflect the nature and strength of alternative socialization efforts. This new framework can help us to better understand contradictory findings in this emerging literature as well as set a new agenda for future research

Trying perpetrators: denazification trials and support for democracy in West Germany

We study the effects of transitional justice (TJ) programs that punish large numbers of human rights violators through the lenses of social psychology theories on how individuals respond to punishment in allocative situations, including how defendants in court trials evaluate their verdicts. We analyze subnational variation in procedures and outcomes of denazification trials in West Germany during 1946-47. Consistently with established findings in social psychology, we find that procedural justice and the distributive fairness of outcomes can compensate for the anti-democratic attitudinal effects of being a defendant in a TJ trial. We also find evidence that procedural justice influences the democratic attitudes of family members of TJ defendants. The study has implications for contemporary cases of TJ programs that affect large numbers of perpetrators

Democracy and retribution: Transitional justice and regime support in postwar West Germany

How harshly should perpetrators of past abuses be punished, to reinforce the legitimacy of a new democracy? Drawing on sociopsychological theories, we hypothesize that prodemocratic mass attitudes are favored by the perception that defendants in transitional justice trials have been punished in a way that is morally proportional to their offenses. This perception is shaped by the social categorization of defendants and the opinions about the certainty of their guilt that predominate in the mass public. When defendants are largely seen as co-ethnics and their guilt is contested, like in the West German case, prodemocratic attitudes are likely to be strengthened by lighter punishments and undermined by harsher sanctions. The analysis of subnational variation in patterns of punishment in postwar West Germany confirms this hypothesis and shows that these attitudinal effects persist in the medium term. Our findings have implications for research on transitional justice and democratization

School Tracking and Access to Higher Education Among Disadvantaged Groups

When students are tracked into vocational and academic secondary schools, access to higher education is usually restricted to those who completed an academic track. Postponing such tracking may increase university attendance among disadvantaged students if additional time in school enables them to catch up with their more privileged counterparts. However, if ability and expectations are fairly well set by an early age, postponing tracking during adolescence may not have much effect. This paper exploits an educational reform in Romania to examine the impact of postponing tracking on the proportion of disadvantaged students graduating from university using a regression discontinuity (RD) design. We show that, although students from poor, rural areas and with less educated parents were significantly more likely to finish an academic track and become eligible to apply for university after the reform, this did not translate into an increase in university completion. Our findings indicate that simply postponing tracking, without increasing the slots available in university, is not sufficient to improve access to higher education for disadvantaged groups.