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Epistemic Communities and Regional Governance: Policy Development in Municipal Finance Reform Shanthi Karuppusamy Wayne State University

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Epistemic Communities and Regional Governance: Policy Development in Municipal Finance Reform Shanthi Karuppusamy Wayne State University Wayne State University Wayne State University Dissertations 1-1-2012 Epistemic communities and regional governance: policy development in municipal finance reform Shanthi Karuppusamy Wayne State University, Follow this and additional works at: http://digitalcommons.wayne.edu/oa_dissertations Part of the Political Science Commons, and the Public Administration Commons Recommended Citation Karuppusamy, Shanthi, "Epistemic communities and regional governance: policy development in municipal finance reform" (2012). Wayne State University Dissertations. Paper 512. This Open Access Dissertation is brought to you for free and open access by DigitalCommons@WayneState. It has been accepted for inclusion in Wayne State University Dissertations by an authorized administrator of DigitalCommons@WayneState. EPISTEMIC COMMUNITIES AND REGIONAL GOVERNANCE: POLICY DEVELOPMENT IN MUNICIPAL FINANCE REFORM by SHANTHI KARUPPUSAMY DISSERTATION Submitted to the Graduate School of Wayne State University, Detroit, Michigan in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY 2012 MAJOR: POLITICAL SCIENCE Approved by: Advisor Date © COPYRIGHT BY SHANTHI KARUPPUSAMY 2012 All Rights Reserved DEDICATION TO LORD IYYAPPA SWAMIYE SARANAM IYYAPPA ii ACKNOWLEDGMENTS To H. George Frederickson and Richard Feiock for their inspiring scholarship, To Richard Elling for his valuable and timely feedback on several drafts of this dissertation, To Kyu-Nahm Jun and Robin Boyle for their services and support as committee members, To John Strate for his kindness and confidence in me, To Simon Andrew and Manoj Shrestha for their insights on data collection and empirical design, To Senthilkumar for proposing that I pursue higher studies in the US, To Wayne State University for its generous resources, To my Motherland India for everything she has given me, To DAD (Karuppusamy) and MOM (Angulakshmi) for their unmatched love and care, Their infinite sacrifices, including not seeing me for several years together, And their courage to challenge a socially conservative society and educate a woman thus far, To my sweet little BROTHER (Manivannan) for his brotherly affection, His countless emails and phone calls that made me feel less lonely, And his holy pilgrimages on bare feet, year after year, seeking God’s blessings for me, To my great GURU, Jered Carr, for investing himself in developing me as a scholar, For teaching me not just Political Science but true values of life, And for being there for me at all times, despite his innumerable academic commitments, To Gods Iyyappa, Muruga, and Kungumakaliamman for blessing me with amazing opportunities, And for bringing these nice people into my life, And finally to the guarding spirits of my grandparents, great grandparents, my aunt, My pretty little sister Sujatha and a dearest friend, THANK YOU! All my successes in life are dedicated to Dad, Mom, Mani and Jered, Shanthi iii TABLE OF CONTENTS Dedication………………………………………………………………………………ii Acknowledgments………………………………………………………………………iii List of Tables……………………………………………………………………………v List of Figures…………………………………………………………………………..vii Chapter 1 Confronting the Challenges of Regional Governance…………………….... 1 Chapter 2 The Epistemic Communities…………………………………………………31 Chapter 3 Research Design and Methodology Used for Studying Municipal Finance Epistemic Communities………………………………………………………74 Chapter 4 Municipal Finance Epistemic Communities: Existence and Composition…..97 Chapter 5 Municipal Finance Epistemic Communities: Patterns of Interaction, Motivations for Interaction and Policy Performance………………………..160 Chapter 6 Epistemic Communities and Regional Governance………………………....210 Appendix A……………………………………………………………………………..224 Appendix B……………………………………………………………………………..233 Appendix C……………………………………………………………………………..235 References………………………………………………………………………………237 Abstract…………………………………………………………………………………254 Autobiographical Statement…………………………………………………………….256 iv LIST OF TABLES Table 2.1: Knowledge Diffusion Practices of Epistemic Communities………………...55 Table 2.2: Factors that Favor the Emergence of Epistemic Communities……………...60 Table 2.3: The Impacts of Epistemic Communities on Public Policy Making………….63 Table 3.1: Search Words/Phrases for Municipal Fiscal Crisis………………………….76 Table 3.2: Proposals and Actions for Confronting Municipal Fiscal Stress……………78 Table 3.3A: Interview Questions--Section One……………………….………………...81 Table 3.3B: Interview Questions--Section Two………………………………………...82 Table 3.3C: Interview Questions--Section Three……………………………………….82 Table 3.3D: Interview Questions--Section Four………………………………………...83 Table 3.4: Identifying Actors with Epistemic Characteristics…………………………..90 Table 3.5: Identifying the Common Policy Agenda of Actors with Epistemic Characteristics……………………………………………………92 Table 3.6: Measuring Epistemic Knowledge Transaction………………………………94 Table 4.1: Epistemes for Identifying Municipal Finance Epistemic Communities…….111 Table 4.2: Municipal Finance Epistemic Communities in Michigan…………………..119 Table 4.3: A Process for Identifying Epistemic Communities Using Social Network Analysis…………………………………………………………………….123 Table 4.4: Composition of MFECs INCOMETAX and ALLREVENUES……………145 Table 4.5: Composition of MFECs EMPLOYEES and RETIREES…………………...147 Table 4.6: Composition of MFECs CONSOLIDATE, COOPERATE and CONTRACT…………………………………………………………..149 Table 4.7: Memberships in Multiple MFECs…………………………………………..152 Table 4.8: Membership in a Single MFEC……………………………………………..153 Table 5.1: General and Hypothesized Network Structures………………………….…165 v Table 5.2: Interaction Patterns of Members of Municipal Finance ECs……………….172 Table 5.3: Strong Ties and Weak Ties of Members of Municipal Finance ECs……….177 Table 5.4: Interview Question on EC Actors’ Motivations for Interactions…………...178 Table 5.5: Motivations for Interactions among Members of Municipal Finance ECs…180 Table 5.6: QAP Correlation Analysis on the Communication Network of EC Actors...183 Table 5.7: QAP Regression Analysis on the Communication Network of EC Actors...189 Table 5.8: Interview Question on the Policy Promotion Forums Used by EC Actors…191 Table 5.9: Policy Promotion Forums Used by Members of Municipal Finance ECs….192 Table 5.10: Liaisons of EC Actors with Policy Makers..………………………………197 vi LIST OF FIGURES Figure 2.1: Technical Complexity of Cases Reviewed………………………………...39 Figure 2.2: Distinguishing Epistemic Communities from Other Groups………………54 Figure 4.1: A Comparison of Michigan Housing and National Consumer Price Indexes--1994 to 2007……………………………………………...105 Figure 4.2: Communication Network on the Issue of Local Government Revenues…..124 Figure 4.3: Communication Linkages of Interviewees on the Issue of Local Government Revenues…………………………………………………….125 Figure 4.4: Actors with Epistemic Characteristics and a Common Policy Agenda……126 Figure 4.5: Municipal Finance Epistemic Community A………………………………127 Figure 4.6: Municipal Finance Epistemic Community B………………………………128 Figure 4.7: Municipal Finance Epistemic Communities A and B within the Full Communication Network on LGR………………………………………...129 Figure 4.8: Communication Network on the Issue of Expenditures on Municipal Employees…………………………………………………………………130 Figure 4.9: Communication Linkages of Interviewees on the Issue of Expenditures on Municipal Employees……………………………………………….....131 Figure 4.10: Actors with Epistemic Characteristics and a Common Policy Agenda…..132 Figure 4.11: Municipal Finance Epistemic Community C……………………………..133 Figure 4.12: Municipal Finance Epistemic Community D……………………………..134 Figure 4.13: Municipal Finance Epistemic Communities C and D within the Full Communication Network on EME………………………………………135 Figure 4.14: Communication Network on the Issue of Public Service Provision..…….136 Figure 4.15: Communication Linkages of Interviewees on the Issue of Public Service Provision……………………………………………..…………137 Figure 4.16: Actors with Epistemic Characteristics and a Common Policy Agenda…..138 Figure 4.17: Municipal Finance Epistemic Community E……………………………..139 vii Figure 4.18: Municipal Finance Epistemic Community F……………………………...140 Figure 4.19: Municipal Finance Epistemic Community G……………………………..141 Figure 4.20: Municipal Finance Epistemic Communities E, F and G within the Full Communication Network on PSP………………………………………..142 Figure 4.21: Communication Network of Municipal Finance Epistemic Communities A, B, C, D, E, F and G…………………………………………………...154 Figure 5.1: Strong Ties and Weak Ties of Members of Municipal Finance ECs……….175 Figure 5.2: Political Ties of MFEC_INCOMETAX within the Full Communication Network on LGR………………………………………………………….198 Figure 5.3: Political Ties of MFEC_ALLREVENUES within the Full Communication Network on LGR………………………………………………………….199 Figure 5.4: Political Ties of MFEC_EMPLOYEES within the Full Communication Network on EME…………………………………………………………200 Figure 5.5: Political Ties of MFEC_RETIREES within the Full Communication Network on EME…………………………………………………………201 Figure 5.6: Political Ties of MFEC_CONSOLIDATE within the Full Communication Network on PSP…………………………………………………………..202 Figure 5.7: Political Ties of MFEC_COOPERATE within the Full Communication Network on PSP…………………………………………………………..203 Figure 5.8: Political Ties of MFEC_CONTRACT within the Full Communication Network on PSP…………………………………………………………..204 viii 1 CHAPTER I Confronting the Challenges of Regional Governance In the face of function-specific and fragmented approaches to regional governance in America, how might regionalism be re-created so that it can deal
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