This paper explores the tension between social and commercial criteria and the importance of the nature of available information in influencing policymaking towards commercial or quasi-commercial activities such as transport undertakings. The importance of financial criteria as key indicators which influence railway policy is established by reference to significant landmarks in the corporate existence of British Rail. An underlying conflict between this information and the declared policies of successive governments is exposed. This reveals that, not only are policy-makers constrained by the difficulties of providing more appropriate information, but they are also the victims of their own reluctance to implement effectively policies which would actually improve existing sources of information.

Collective-action theory suggests that a country's economic size determines its contribution to international organizations, with large economies paying a disproportionate percentage of their GNP for maintenance of these organizations. This paper argues against this reigning paradigm, finding that it fails to predict current contribution patterns in the United Nations (UN). Instead, the paper offers a more elaborate model of burden sharing that takes into account the domestic political setting and international setting that helps determine a nation's contribution to international organizations.

This paper examines approaches to public investment appraisal as theyare currently recommended in the British Treasury and implemented byevaluation units within the Department of Health, Department of Transport and the Home Office. The evidence suggests that spending departments have reacted to the pressure for increased selectivity in their expenditures by adopting a heterogeneous blend of appraisal techniques, including financial analysis, cost-effectiveness and option appraisal, withcost-benefit analysis eventually playing a minor role. The imposition of cash limits rations capital expenditures. When these constraints bite departments differently, either a unique social discount rate for projectappraisal is inappropriate or the rations themselves are giving wrong signals to the departments The departments do not have an incentive todevote time and effort to cost benefit analysis and other techniques of a more limited scope are implemented.

Although European Monetary Union led to the creation of one of the world's most independent central banks, politics has not been removed from monetary integration. The European Central Bank's primary claim to legitimacy rests with its ability to deliver low inflation and presumably higher growth. Its independence may be insufficient for this task, making its relationship with political institutions like the Euro-12 and European Parliament more important over time in order to augment its own credibility. This article argues that a model of collective responsibility is more appropriate than one of principle-agent theory to describe the development of European monetary relations between the various institutions as they will need to rely on one another if a coherent European monetary policy is to take shape.

The paper examines the range of currency and exchange rate regimes choices facing small countries living next to large currency blocs, such as the euro area and the United States. It draws on Canada's successful experience in the 1990s with a flexible exchange rate and explicit inflation targets to argue that such a monetary rule may be the appropriate policy alternative for small countries in this situation such as the United Kingdom or Norway, that are unwilling to surrender their national currency or their monetary independence for economic or political reasons. Because the Canadian economy is more dependent on the production of natural resource products than the economy of its major trading partner, the United States, Canada's flexible exchange rate plays a valuable role in helping to stabilise the Canadian economy in the face of global shocks to natural resource prices.

This paper investigates how different factors, such as size, duration and composition of fiscal changes, can alter the effects of fiscal policy on private consumption. Using an unbalanced panel of 19 OECD countries during the period 1960–2000, it is found that transfer changes are believed to be permanent during fiscal contractions. Hence, it is more likely that an expansionary fiscal contraction will occur if the government cuts transfers. This result highlights the importance of taking into account specific circumstances, such as the debt and deficit position, when studying expansionary fiscal contractions. The results also indicate that expansionary fiscal contractions are likely to come at a considerable social cost.

Does the threat of automation of workers’ employment provoke distinct policy preferences from that of globalization? We present hypotheses about how these different threats affect support for policies to prevent such shocks as well as policies to compensate via redistribution. Using vignettes and conjoint experiments embedded in survey evidence from Spain, we find that the threat of automation does not provoke any greater demand for redistribution than does openness. Nor does job loss due to automation provoke beliefs of greater deservingness of compensatory transfers, compared to job loss from openness. While the threat of offshoring and hiring foreign workers increases support for policies to prevent this process from occurring, scenarios of robot substitution do not provoke a similar reaction. These results suggest policies to prioritize automation over openness may gain less political traction.

Why do citizens support or reject climate change mitigation policies? This is not an easy choice: citizens need to support the government in making these decisions, accept potentially radical behavior change, and have altruism across borders and for future generations. A substantial literature argues that political trust facilitates citizen support for these complex policy decisions by mitigating the cost and uncertainty that policies impose on individuals and buttressing support for government intervention. We test whether this is the case with a pre-registered conjoint experiment fielded in Germany in which we vary fundamental aspects of policy design that are related to the cost, uncertainty, and implementation of climate change policies. Contrary to strong theoretical expectations and previous work, we find no difference between those with low and high trust on their support for different policy attributes, assuaging the concern that low and declining trust inhibits climate policymaking.

International monetary problems moved from the back pages to the front pages long ago, and yet, despite much attention, they continue to trouble national leaders, entrepreneurs, international officials and scholars, and to affect the average citizen. World payments imbalances and currency fluctuations have substantial domestic economic effects, give rise to protectionist pressures, put unwelcome heat on politicians, and raise fears that resulting governmental conflicts could unravel political-security relations. Thus, large and small nations meet in various fora, from bilateral sessions through the Group-of-Seven powers to the annual IMF conference, to negotiate proposed changes.

As the debate throughout the eighties has concluded, the efforts of governments to intervene at the firm level has largely been disappointing. Using two examples drawn from the British experience, Rover and Inmos, this paper offers an analysis as to why the Government has encountered difficulties when it has sought to intervene in a strategic fashion. Essentially, public policy makers lack adequate mechanisms to intervene effectively in technology-based companies. Locked out of the knowledge base of the firm, inappropriate financial control is imposed which reinforces the ‘outsider’ status of the Government. Having addressed the limitations of strategic intervention, the paper, drawing on the comparative experience of other countries, then goes on to address how this policy boundary might be pushed back in the long term.

A model of the territorial distribution of public employment within a country is presented, and tested with evidence from the United Kingdom in 1977. Three influences are suggested to account for the pattern of territorial variation: proportionality (an even distribution after standardisation for area and client group characteristics); the structure of the public sector (the presence of industries and services that must be concentrated in some places) and political discretion. These are then related to different activities of government. The first two influences are shown to account for much, though not all, of the territorial variation between United Kingdom nations and regions in 1977, substantial though this was, with Northern Ireland having nearly twice the level of public employment of the West Midlands. Location patterns tend to be byproducts of decisions taken on functional grounds, with structural constraints and service entitlements having a much greater impact than political choice.

Advocates of pervasive social experimentation neglect to consider the effect that suchexperimentation might have on citizens' respect for the law and their inclination to obey it. Since habit plays a large part in law abidingness, frequent alterations in law, even when substantively justified on narrow policy grounds, weaken the power of law in general. Because of their great utility, we should use social experiments occasionally when they can shed light on crucial dimensions of truly important policy questions. But because pervasive experimentation threatens law abidingness and citizen support for the regime, we should decide against some otherwise justifiable experiments and neither expect nor wish for the sort of experimenting society advocated by many social scientists.

The public policy issues of modernizing public agencies in Central Europe are nowhere more pressing than in the process of modernizing militaries. The leaders of central Europe – Poland, Hungary, the Czech Republic and Slovakia – plan to deploy smaller, more professional forces equipped with advanced weapons and support systems, changing their organizations accordingly. This paper argues that the political and organizational circumstances roughly common to Central European countries make such modernization highly problematical for effective civilian policy in crises. Advanced technologies can compound the normal problems of civilian ministerial control by altering modernizing military organizations in unexpected ways. The more intricate, critical and expensive the machines, the more organizational effects they induce. Even in minor crises, military leaders will probably want to move to heightened states of readiness to be sure the machines are in place and functional. Under these circumstances, there is greater potential for each otherwise noisy but survivable crisis to escalate through regrettable military guidance and destabilizing military actions, with or without full civilian understanding.

All countries in Central and Eastern Europe require rapid and drastic restructuring of their public pension schemes for macro- and microeconomic reasons. While initial considerations were geared towards streamlining the unfunded scheme, reducing many distortions and making it financially sound, some transition economies initiated reform plans for a move from unfunded to funded retirement income provision. The paper reviews the need for reform and surveys the discussion and current plans before addressing three central open questions: How to structure the first and unfunded tier? How to finance the transition toward the second and funded tier? What are the minimum financial sector requirements before funded provisions can be initiated? The success of the current pension reform efforts in Central Europe will have an important bearing on developments throughout Europe. A failure in one transition economy caused by bad design, unprojected deficits, or insufficient financial market preparation could discredit a funded pension system in the whole region; a successful move towards an unfunded-funded multi-tier pension scheme in Eastern Europe could positively stimulate the discussion of pension reform in the European Union.