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Article
Publication date: 5 April 2013

Altruism and participation costs in local redistribution: Empirical evidence for Brazilian municipalities

Rafael Terra and Enlinson Mattos

The purpose of this paper is to investigate the role played by the geographic distance between the poor and non‐poor in the local demand for income redistribution and, in…

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Abstract

Purpose

The purpose of this paper is to investigate the role played by the geographic distance between the poor and non‐poor in the local demand for income redistribution and, in particular, to provide an empirical test of the geographically limited altruism model proposed by Pauly, incorporating the possibility of participation costs associated with the provision of transfers.

Design/methodology/approach

First, the authors motivate the discussion by allowing for an “iceberg cost” as participation for the poor individuals in Pauly's original model. Next, using data from the 2000 Brazilian Census and a panel based on the National Household Sample Survey (PNAD) from 2001 to 2007, the authors estimate the effect of the proximity between poor and non‐poor on the demand for redistribution.

Findings

All of the authors' distance‐related explanatory variables indicate that an increased proximity between poor and non‐poor is associated with better targeting of the programs (demand for redistribution). For instance, a one‐hour increase in the time spent commuting by the poor reduces the targeting by 3.158 percentage points. This result is similar to that of Ashworth et al., but is definitely not due to the program leakages. To empirically disentangle participation costs and spatially restricted altruism effects, an additional test is conducted using unique panel data based on the 2004 and 2006 PNAD, which assess the number of benefits and the average benefit value received by beneficiaries. The estimates suggest that both cost and altruism play important roles in the demand for redistribution and might reduce targeting in Brazil. Lastly, the results indicate that “size matters”; i.e. the budget for redistribution has a positive impact on targeting.

Practical implications

Our results suggest that a totally centralized supply of transfers may be more inefficient than local redistribution in terms of targeting, either due to higher participation costs or because of the eventual greater geographical distance between the national median voter and poor individuals. However, a partial role for the federal government, such as providing funds for redistribution, seems to improve targeting.

Originality/value

In particular, the paper provides an empirical test for the geographically limited altruism model proposed by Pauly, incorporating the possibility of participation costs associated with the provision of transfers. The authors motivate this discussion by adding the possibility of distance‐related “iceberg costs” of delivering benefits to poor individuals and show that these two effects of distance may act to lower the demand for transfers, making it difficult to distinguish between the two effects. These two effects of distance act by lowering the demand for transfers, making it difficult to disentangle the effect of altruism from the effect of cost. The authors' empirical strategy seems to allow to identify each of them and to provide a suggestion on whether it is advantageous to carry out redistribution at the local level.

Details

International Journal of Social Economics, vol. 40 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/03068291311315313
ISSN: 0306-8293

Keywords

  • Incomes policy
  • National economy
  • Brazil
  • Cities
  • Local redistribution
  • Median voter demand
  • Altruism
  • Geographical distance

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Book part
Publication date: 31 July 2008

Shorter Notes by F. Taylor Ostrander on Lectures, Oxford University, 1932–1933

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Documents from F. Taylor Ostrander at Oxford, John R. Commons' Reasonable Value
Type: Book
DOI: https://doi.org/10.1016/S0743-4154(08)26039-6
ISBN: 978-1-84663-906-7

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Article
Publication date: 30 October 2020

Relevance of cryptomarkets, characteristics of purchasers and possibilities for survey research: experience from the European Web Survey on Drugs

Julian Strizek, Alexandra Karden and João Matias

The purpose of this paper is to assess the relevance of cryptomarkets, characteristics of purchasers and possibilities for survey research by approaching users directly on…

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Abstract

Purpose

The purpose of this paper is to assess the relevance of cryptomarkets, characteristics of purchasers and possibilities for survey research by approaching users directly on cryptomarkets.

Design/methodology/approach

Cross-country comparison of the results from the European Web Survey on Drugs (EWSD) and summarizing lessons learned during the data collection was carried out.

Findings

Purchasers of drugs on cryptomarkets are still a rather small segment of all drug purchasers, and most people who use cryptomarkets also use other sources of supply to buy drugs. The percentage of people using cryptomarkets is unevenly distributed across countries and substances. Purchasers on cryptomarkets in most countries are more likely to be men and more likely, on average, to use more substances. Other characteristics such as age or place of residence do not show a consistent pattern across countries. Recruitment of respondents on cryptomarkets calls for specific techniques and procedures. Specific attention should be paid to build trust and guarantee credibility and anonymity.

Research limitations/implications

Interpretation of the quantitative results is limited by nonprobabilistic sampling and different recruitment strategies in different countries.

Practical implications

Users of cryptomarkets show some specific characteristics, providing a challenge for research and prevention agencies to keep up with digital technology. Increasing knowledge about characteristics of users of cryptomarkets may help to create adequate responses for harm reduction measures in different supply settings. However, collecting self-reported data from users on cryptomarkets is limited owing to significant privacy concerns and requires specific skills and strategies.

Originality/value

The EWSD provides a rare opportunity for detailed analyses of consumption patterns and characteristics of active drug users across several European countries. Furthermore, experiences of a new recruitment strategy are discussed.

Details

Drugs and Alcohol Today, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/DAT-12-2019-0052
ISSN: 1745-9265

Keywords

  • Recruitment strategies
  • Cryptomarkets
  • Consumption patterns
  • Cross-country analyses
  • European Web Survey on Drugs
  • User characteristics

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Article
Publication date: 4 November 2014

The German miracle or the miracle of the cultural attitude: Inequality and convergence as products of culture in Germany

Annie Tubadji and Nataly Gnezdilova

– The purpose of this paper is to explore the link between redistribution, convergence and local cultural capital (as defined by culture-based development concept).

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Abstract

Purpose

The purpose of this paper is to explore the link between redistribution, convergence and local cultural capital (as defined by culture-based development concept).

Design/methodology/approach

The paper infers the basic mechanism of the cultural dependence of convergence and inequality – through an empirical test for the case of the “German job miracle” during the current crisis. Two empirical questions are asked: first, is local income inequality associated with local cultural capital and second, is the negative convergence between East and West Germany during the crisis related to culturally sensitive employers’ preference for job preservation vs job loss. An OLS enquiry and two deeper estimation methods (a logit model and a 3SLS simultaneous equations model) are alternatively applied in order to triangulate the empirical results.

Findings

The findings support the existence of cultural effect on local income inequality and cultural path dependence of employers’ preferences for job preservation vs job loss in a condition of economic shock.

Originality/value

The paper provides both theoretical reasoning and empirical illustration of the significance of the cultural effect on human preferences which may or may not allow for redistribution and convergence between localities.

Details

International Journal of Social Economics, vol. 41 no. 11
Type: Research Article
DOI: https://doi.org/10.1108/IJSE-11-2012-0211
ISSN: 0306-8293

Keywords

  • Employment
  • Culture
  • Income distribution
  • Local economies
  • Sustainable development

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Article
Publication date: 10 November 2014

Fiscal externalities in a three-tier structure of government

Andreas Kappeler

Federal systems are often more sophisticated than assumed in the literature. In many cases, at least three tiers of government are involved in federal decision making. The…

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Abstract

Purpose

Federal systems are often more sophisticated than assumed in the literature. In many cases, at least three tiers of government are involved in federal decision making. The purpose of this paper is to cast some light on this increasingly important issue in fiscal federalism.

Design/methodology/approach

In a model with three tiers of government, the author analyzes corrective policies in the presence of fiscal externalities generated by federal redistribution.

Findings

The author identifies an additional qualitative incentive effect, particularly for intermediate governments. They behave strategically to attract additional redistribution funds from outside, though still using corrective policies to provide investment incentives toward their own regions. The results also suggest that differently from the USA the federal system of the EU may lead to inefficiently low regional investment.

Originality/value

The presented model is a first step toward analyzing strategic behavior and the effect of corrective policies in more complicated federal set ups with three tiers of government involved. This is relevant for federal structures such as Germany or the USA, as well as for government interactions at the international level.

Details

Journal of Economic Studies, vol. 41 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/JES-03-2013-0033
ISSN: 0144-3585

Keywords

  • USA
  • EU
  • Conditional grants
  • Federal redistribution
  • Public investment
  • Fiscal federalism

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Article
Publication date: 31 May 2013

Nussbaum's political liberalism: justice and the capability threshold

Peri Roberts

Central to Martha Nussbaum's development of the capability approach into a theory of social and global justice is her addition of the notion of a capability threshold…

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Purpose

Central to Martha Nussbaum's development of the capability approach into a theory of social and global justice is her addition of the notion of a capability threshold below which no dignified human life can be lived. This capability threshold identifies a standard for distributive justice that any decent political order must secure for all citizens. It is this threshold that is the intended focus of this paper.

Design/methodology/approach

Examining her most recent statement of the capability approach, Nussbaum's arguments that the threshold should be locally set by each nation in accordance with their history and traditions, and that all nations currently fail to satisfy the threshold condition, are assessed.

Findings

This paper shows that if Nussbaum's arguments are accepted, then the central function of a threshold as a tool of discrimination is undermined. If all nations fail to meet their locally set threshold, then there is no clear basis for the global redistribution that Nussbaum regards as necessary. Indeed, what basis there is could even justify counter‐intuitive redistribution from poorer to richer nations.

Originality/value

This paper concludes that if the capability approach is to be developed into a theory of social justice, then, rather than being set locally at different levels, the capability threshold may need to be a genuinely global one. Only then can the threshold discriminate between unjust political orders and those that are at least minimally just.

Details

International Journal of Social Economics, vol. 40 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/IJSE-2012-0136
ISSN: 0306-8293

Keywords

  • Distributive justice
  • Global justice
  • Human capabilities
  • Liberalism
  • Justice
  • Social justice

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Article
Publication date: 1 April 1989

“Poll taxes”, property taxes and the housing market

Colin Lizieri

Attempts to place the debate over the introduction of the communitycharge in the more analytical framework of economic theory. Argues thatthe community charge has…

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Attempts to place the debate over the introduction of the community charge in the more analytical framework of economic theory. Argues that the community charge has disadvantages in terms both of equity and efficiency. Considers the wider effects of the abolition of domestic rates on the housing market. Using a case study, examines the feasibility of an alternative local taxation system based on capital values.

Details

Journal of Valuation, vol. 7 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/EUM0000000003268
ISSN: 0263-7480

Keywords

  • Community charge
  • Economic theory
  • Housing
  • Rates bills
  • Taxation

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Article
Publication date: 3 August 2012

CSR and inequality in the Niger Delta (Nigeria)

Cécile Renouard and Hervé Lado

The international awareness of corporate social responsibility (CSR) issues and the socio‐political context of emerging countries are increasing the pressure on…

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Purpose

The international awareness of corporate social responsibility (CSR) issues and the socio‐political context of emerging countries are increasing the pressure on businesses, including multinational corporations, to take another look at their societal role. In a context of state failure (immature institutions), paying taxes can guarantee neither the peaceful management of company operations nor the sustainable development of local communities. Moreover, multinationals have experienced that making resources and opportunities available to local communities is not enough. The Niger Delta in Nigeria is, in this regard, a textbook case that demonstrates the challenge of achieving sustainable development in the context of acute inequalities. This paper seeks to address these issues.

Design/methodology/approach

Drawing on fieldwork – quantitative and qualitative surveys – carried out in Nigeria for the past seven years, the paper builds on initiatives and approaches undertaken by Total, Agip and NPDC/Shell, consistent with their understanding of their role in society.

Findings

Inequalities and imbalances (income, gender, inter‐regional, sector‐based) ferment frustrations and nurture insecurity and violence in the Niger Delta, therefore hindering sustainable development. As far as the relationship between oil companies and communities is concerned, the authors argue that oil multinationals have to foster an approach that targets the reduction of those exceptional inequalities for which they are partly responsible, as revealed with the “double effect” principle.

Originality/value

Whereas CSR has been so far mainly studied as a management issue, this paper brings broader views and analyzes ethical, cultural and economic dynamics that underlie the acceptability of companies in their environment, in the specific context of the Niger Delta.

Details

Corporate Governance: The international journal of business in society, vol. 12 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/14720701211267810
ISSN: 1472-0701

Keywords

  • Corporate social responsibility
  • Corporate governance
  • Development
  • Inequalities
  • Multinational companies
  • Niger Delta
  • Nigeria
  • Oil
  • Redistribution
  • Social justice
  • Social development
  • Economic development

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Article
Publication date: 13 January 2020

Fuel to the fire? The sensemaking of volunteer firefighters and public managers in the context of public reform

Leonore Van den Ende, Ronald van Steden and Kees Boersma

The purpose of this paper is to advance ongoing debates on the organizational impact of wider public sector reform in the field of organizational change management by…

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Abstract

Purpose

The purpose of this paper is to advance ongoing debates on the organizational impact of wider public sector reform in the field of organizational change management by presenting an analysis the regionalization of the fire service in the Netherlands. How regionalization has impacted the work floor of local fire stations, where the workplace majority comprises volunteers, requires further empirical investigation.

Design/methodology/approach

The authors apply an interpretive approach and qualitative methodology to study how volunteer firefighters and public management make sense of public reform and the ensuing organizational change.

Findings

Findings indicate that while the fire service has professionalized, notable tensions have emerged between public management and volunteers, the regional and local level of fire service and between professionalism and volunteerism which are problematised in the paper.

Originality/value

The originality of the paper is found in the insight it provides in the sensemaking of volunteer firefighters and public managers of diverse of change regions and fire stations during the regionalization process by applying an emergent perspective to change.

Details

Journal of Organizational Change Management, vol. 33 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JOCM-03-2019-0067
ISSN: 0953-4814

Keywords

  • Sensemaking
  • Organizational change
  • Volunteers
  • Public reform

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Book part
Publication date: 14 May 1997

Intergovernmental Relations, Service Provision and the Delivery of Health Care in California

Juliet Musso and John M. Quigley

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Details

Government for the Future
Type: Book
DOI: https://doi.org/10.1108/S0573-8555(1997)0000238008
ISBN: 978-1-84950-852-0

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