Recent research on the sources of individual attitudes toward trade policy comes to very different conclusions about the role of economic self-interest. The skeptical view suggests that long-standing symbolic predispositions and sociotropic perceptions shape trade policy opinions more than one's own material well-being. We believe this conclusion is premature for two reasons. First, the practice of using one attitude to predict another raises questions about direction of causation that cannot be answered with the data at hand. This problem is most obvious when questions about the expected impact of trade are used to predict opinions about trade policy. Second, the understanding of self-interest employed in most studies of trade policy attitudes is unrealistically narrow. In reality, the close relationship between individual economic interests and the interests of the groups in which individuals are embedded creates indirect pathways through which one's position in the economy can shape individual trade policy preferences. We use the data employed by Mansfield and Mutz to support our argument that a more complete account of trade attitude formation is needed and that in such an account economic interests may yet play an important role.1

Do democracies make more effective coercive threats? An influential literature in international relations argues that democratic institutions allow leaders to credibly signal their resolve in crises, thereby making their threats more likely to work than threats by nondemocracies. This article revisits the quantitative evidence for this proposition, which we call the “democratic credibility hypothesis,” and finds that it is surprisingly weak. Close examination of the data sets most commonly used to test this hypothesis reveals that they contain few successful democratic threats, or indeed threats of any kind. Moreover, these data sets' outcome variables do not properly measure the effectiveness of threats, and therefore yield misleading results. The article then reassesses the democratic credibility hypothesis using the Militarized Compellent Threats data set, a new data set designed specifically to test hypotheses about the effectiveness of coercive threats. The analysis indicates that threats from democracies are no more successful than threats from other states.

There is significant variation in the design of military alliances but scholars currently do not have a good understanding of when members choose one design over another. This article argues that alliance design is motivated, at least in part, by reliability considerations. If concerns about opportunism are high—when prospective members have a history of alliance violation—the signatories should be more willing to implement costly reliability-enhancing provisions such as greater precision in when alliance obligations apply, issue linkage, and increased institutionalization. However, this should be more likely in symmetric alliances where members of similar power levels rely on the support of their partners and thus sensitivity to opportunism is high. In asymmetric alliances, major powers may not find reliability-enhancing provisions necessary and minor powers, who do worry about the reliability of their partners, are unable to force more costly alliance designs given their limited bargaining power. The theoretical expectations are tested using data on bilateral alliances between 1919 and 2001 and the results are generally supportive of the hypotheses.

Little existing work has systematically examined the factors that help terrorist groups survive or contribute to their failure. State support for terrorist groups is commonly thought to be a factor that helps groups to survive. I demonstrate with newly collected data that state sponsorship is not always helpful to terrorist groups. The resources provided by sponsors increase a group's ability to maintain itself internally. However, when a group has a sponsor that provides it with safe haven, the risk of the group being forcefully eliminated by the target increases. I argue that sponsors that provide safe haven can have incentives to provide information to the target about the groups to avoid potential costs from target military operations within their territory. The key empirical findings suggest that state sponsorship is a less serious problem for target states than many previously thought.

We consider the influence of countries' external security environments on their military spending. We first estimate the ex ante probability that a country will become involved in a fatal militarized interstate dispute using a model of dyadic conflict that incorporates key elements of liberal and realist theories of international relations. We then estimate military spending as a function of the threat of armed interstate conflict and other influences: arms races, the defense expenditures of friendly countries, actual military conflict, democracy, civil war, and national economic output. In a panel of 165 countries, 1950 to 2000, we find our prospectively generated estimate of the external threat to be a powerful variable in explaining military spending. A 1 percentage point increase in the aggregate probability of a fatal militarized dispute, as predicted by our liberal-realist model, leads to a 3 percent increase in a country's military expenditures.

The literature exploiting historical data generally supports the democratic advantage thesis, which holds that democracies can sell more bonds on better terms than their authoritarian counterparts. However, studies of more recent—and extensive—data sets find that democracies have received no more favorable bond ratings from credit rating agencies than otherwise similar autocracies; and have been no less prone to default. These findings raise the question: where is the democratic advantage? Our answer is that previous assessments of the democratic advantage have typically (1) ignored the democratic advantage in credit access; (2) failed to account for selection effects; and (3) treated GDP per capita as an exogenous variable, ignoring the many arguments that suggest economic development is endogenous to political institutions. We develop an estimator of how regime type affects credit access and credit ratings analogous to the “reservation wage” model of labor supply and treat GDP per capita as an endogenous variable. Our findings indicate that the democratic advantage in the postwar era has two components: first, better access to credit (most autocracies cannot even enter the international bond markets); and second, better ratings, once propensity to enter the market is controlled and GDP per capita is endogenized.

Given frequent leadership turnover and leaders' need to appeal to voters, democracies should face difficulties in maintaining their alliance commitments. Yet the empirical evidence predominantly shows that they do make reliable allies. Democratic governments can increase reliability by binding future administrations through the choice of alliance commitment. While defense pacts precommit future leaders to close military cooperation with an ally, consultation pacts leave more room for discretion. This research note examines when precommitment through a defense pact is likely to occur. A government should be more likely to conclude a defense pact if potential successors have different preferences regarding the alliance, if the government believes that it will lose power soon, and if the costs of precommitment are not too high. I test the theoretical expectations using the Alliance Treaty Obligations and Provisions (ATOP) data between 1945 and 2003. The findings support the argument and suggest an answer to the puzzle of why states sometimes conclude whole-hearted commitments and other times seemingly half-hearted ones.

We examine whether and under what circumstances World Bank and International Monetary Fund (IMF) programs affect the likelihood of major government crises. We find that crises are, on average, more likely as a consequence of World Bank programs. We also find that governments face an increasing risk of entering a crisis when they remain under an IMF or World Bank arrangement once the economy's performance improves. The international financial institution's (IFI) scapegoat function thus seems to lose its value when the need for financial support is less urgent. While the probability of a crisis increases when a government turns to the IFIs, programs inherited by preceding governments do not affect the probability of a crisis. This is in line with two interpretations. First, the conclusion of IFI programs can signal the government's incompetence, and second, governments that inherit programs might be less likely to implement program conditions agreed to by their predecessors.

Much scholarship in the political economy literature has investigated the influence of the democratic advantage on sovereign bond ratings by credit rating agencies (CRAs). Missing from earlier work, however, is inquiry into the effects on bond ratings of factors that lower political risk, such as adherence to the rule of law, the presence of a strong and independent judicial system, and protection of property rights. Using panel data for up to thirty-six developing countries from 1996 to 2006, we find that rule of law, strong and independent courts, and protection of property rights have significant positive effects on bond ratings. Policymakers wanting to obtain higher bond ratings and increased revenue from bond sales would do well to heed the message contained in these findings.