We provide evidence on the match between …rms, managers, and incentives using anew survey that contains information on managers' risk preferences and human capital,on their compensation schemes, and on the …rms they work for. The data is consistentwith the equilibrium correlations predicted by...

We propose a distinction between active waste and passive waste as determinantsof the cost of public services. Active waste entails utility for the publicdecision maker (as in the case of bribery) whereas passive waste does not (asin the case of inefficiency due to red tape). To assess the...

This paper reviews the achievements of the Labour Government’seducation policy between 1997 and 2001. Tony Blair claimed that hisGovernment would make education a priority. The first part of thepaper reviews the scale of education spending in relation to theeconomy at large and within the...

This paper discusses the contribution made by American social scientists to thestudy of poverty in the past twenty five years. It has three parts. The firstconcentrates on the measurement of poverty and the fact that the US povertyline remained unchanged in that period despite its increasingly...

Area-based polices have become a significant part of the new LabourGovernment’s approach to tackling social exclusion. This paper reviewsthe long-running debate about whether area-based policies can make asignificant impact on poverty and social exclusion. There is a strongtradition of...

In the past decade there has been a minor revolution in how local services are funded.Those delivering the services now have their own budgets. How these budgets arecalculated – how Whitehall pulls the purse strings – are now central issues in social policy.In a new book, CASE members...

Reform of the welfare state is at the centre of political debate. In a new book, CASEmembers analyse changes in social policies over the last twenty-five years, trends inspending, outcomes of policies, and impacts on institutions and families.The stereotypes of both left and right are wrong....

An organization will often use a specialized technical language that is un-derstood by its members but not by others. We develop a theory of optimalorganizational languages and identify a key trade-o¤ between facilitatinginternal communication and encouraging communication with other...

It has long been recognized that the media play an essential role in governmentaccountability. However, even in the absence of censorship, the government mayinfluence news content by maintaining a "cozy" relationship with the media. Thispaper develops a model of democratic politics in which...

Recent events in several countries have underscored the importanceof good governance in private occupational pension plans. Thepresent paper uses contract theory to analyze the interplay of residualclaims and control rights in private pensions. The residual claimant isthe plan sponsor in a...