trade openness and public expenditure the spanish case 1960 2000 the empirical link between the post wwii expansion of international market integration and the growth of national public expenditure has been widely noted with no consensus as yet regarding the interpretation of this correlation we posit that a likely link between increased openness and public spending is the use of the latter to offset changes in the distribution of income that result from increased openness to explore this potential link we study time series data from spain in 1960 2000 a period of major changes in political organization as well as in both fiscal and trade policy we find evidence that democracy reinforced the causal relation from increased openness to greater public expenditure thus the paper contributes to the literature that emphasizes that changes in political regimes are potentially important determinants of the observed international patterns of openness and government size

accounting for retail land sales analysis of a mandated change abstract this study assesses the stock market s reaction to a series of events leading up to a mandated change in accounting for retail land sales evidence is found to support the conclusion that the market reacted to some of these events in a manner consistent with the effects of the accounting change on debt annagement contracts a distinctive aspect of the analysis is the efficient use of security returns data to detect market reactions and to derive empirical distributions of test statistics employed the analysis is extended by a model for grouping regression equations known as seemingly unrelated regressions however the gains from this extension are modest

male marital wage differentials training personal characteristics and fixed effects i introduction there is substantial evidence that married white men earn between 8 and 15 more than unmarried white men in the united states even after controlling for education and informal job market experience e g potential or actual experience cross section analysis indicates that both the level and the growth rate of wages increase during marriage these results suggest that men may become more productive after marriage an effect often attributed to the increased specialization possible following the formation of a multiperson household however panel estimates indicate that much of the differential is explained by individual specific fixed effects which suggest that more productive men are more likely to marry while these results and implications are well known the precise nature of the implied productivity differentials has received little attention in the literature using the 1979 cohort of the national longitudinal survey of youth nlsy79 we investigate the structure or source of the observed differential we do so by first extending the analysis to a sample of african american men in the united states to our knowledge ours is the first study to conduct a detailed analysis of the marital wage gap among african american men that is fully comparable to that already available for white men this extension is informative because african american households are known to exhibit less specialization along gender lines and because marital patterns are quite different by race next we explore formal job training as one avenue to productivity enhancement we outline a simple story suggesting that married men may be more receptive to training opportunities than unmarried men and present some evidence suggesting that firms may be more willing to offer training to married as compared to unmarried men previous analysis has focused on labor market experience or years married as proxies for both informal and formal job training we significantly improve upon this by using direct information on formal job training to see if wage changes at or following the time of marriage are driven by training induced productivity differentials third we explore the nature of the selection effect or the possibility that it is more productive men who marry the nlsy79 has an extensive array of information on personal characteristics that might be associated with both marriage and earnings if certain personal characteristics are associated with both marriage and earnings but not typically included in wage analyses then the marital controls in standard wage equations may simply be proxying for these characteristics controlling for such characteristics directly should identify the nature of the selection effect and reduce the significance of the marital indicators in cross section estimates the attributes we examine include cognitive skills parental background and personality traits our final contribution is to estimate panel models to eliminate all observable and unobservable individual specific time invariant factors and to reconcile these results with those obtained from cross section models specifically we exploit the different identification conditions between panel and cross section models examining the role of respondents who are always married never married or always separated divorced technically such individuals contribute to the identification of the cross section but not the panel estimates of the marital wage differential thus these individuals may explain the substantial differences often observed between panel and cross section estimates of the white male marital wage differential ii literature review evidence of the marital wage differential for white men in the united states is extensive see ribar 2004 for a review some of this differential has been attributed to a selection effect to the fact that men who marry earn more throughout their lives than men who do not marry

measuring the effects of regulation with stock price data this article examines the usefulness of stock returns in measuring the effects of regulation when the dates on which market expectations change are not known and standard sources e g the wall street journal are used to choose announcement dates twenty major changes in regulatory constraint since 1887 are considered tests using either monthly or daily data are found to have surprisingly little ability to detect the effects of regulation the evidence shows that formal regulatory announcements are generally anticipated in cases where it is unclear when expectations change

the wealth effects of deregulation of canadian financial institutions abstract canada like other industrial countries recently introduced various financial reforms to remove the barriers separating the operations and ownership of banks from non bank financial institutions this study analyzes the wealth effects of the reforms on the banks and non bank financial institutions and the changes in their systematic risk resulting from financial deregulation over the period 1984 to 1991 the results indicate that while there was a significant cumulative gain for the insurance industry unlike a number of u s studies there was no evidence of wealth transfer among the institutions during the period of deregulation of the canadian financial system additional tests indicate that although the regulatory changes did not have a significant effect on the risk of the banks the systematic risk of the non bank financial institutions increased significantly during the period of regulatory reforms

peacock and wiseman on the growth of public expenditure the late nineteenth century view of the growth of the public sector enuciated by adolph wagner 1890 now known as wagner s law accorded well with the doctrine of comparative advantage with the growth of the industrial economy a complementary demand was set up alongside industrial and manufacturing expansion for transport and communication services energy and waste disposal central and local governments were viewed as having a comparative advantage in providing such services justifying wagner s law that government expenditure would continuously increase as a percentage of gross domestic product in a growing economy in 1961 as part of their seminal study of the growth of public expenditure in the united kingdom alan t peacock and jack wiseman1 questioned the generality of wagner s law and introduced their now famous displacement effect hypothesis to explain the time path of the growth of government in democratic countries writing before the public choice research program was at all well established peacock and wiseman nevertheless rejected wagner s reliance upon the organic state and relied instead on political propositions that

capital gains tax and equity values empirical test of stock price reaction to the introduction and reduction of capital gains tax exemption abstract this paper evaluates the differential effect on stock prices of the introduction in canada of 500 000 capital gains tax exemption and the reduction of this limit to 100 000 two years later using the seemingly unrelated regression methodology and controlling for thin trading and heteroscedasticity the empirical evidence indicates that the changes in capital gains tax laws had a differential effect on low dividend yield and high dividend yield stocks on both occasions while the evidence indicates that the stock market anticipated the 1985 capital gains tax law changes the significant market reaction to the 1987 reduction of the exemption occurred a day before and after the reading of the tax reform proposals in parliament thus it can be inferred from the results that despite the presence of tax sheltering opportunities in canada changes in capital gains tax laws affect equity values

a new test of the relationship between regulatory change in financial markets and the stability of beta risk of depository institutions the us economy experienced major regulatory changes in the banking and finance industry with the passage of five major acts over the period 1980 to 1991 this has generated an extensive literature investigating the effects of these changes on the us banking industry in particular this body of research has examined the share market reaction to regulatory changes as well as their impact on the risk return market value and profitability of banking industry stocks generally it has been found that the regulatory changes have had a substantial impact although the effect has not been uniform across all depository institutions this paper extends this literature by analysing the stability of a sample of eighteen us banking industry stock betas across five periods a pre regulatory change period a monetary experiment period a deregulation period a reregulation period and a post regulatory change period based on an analysis of weekly returns we find that the level of bank risk has increased further we also find a tendency towards greater beta instability in both the monetary experiment and deregulation samples the degree of beta instability is lowest in the pre regulatory change and post regulatory change samples overall the monetary experiment and regulatory change coincided with an increased tendency towards beta instability we also compare our results to a randomly selected control sample of non banks and find some more general effects of regulatory change on individual stock betas

the market valuation effects of the financial institutions reform recovery and enforcement act of 1989 abstract this paper evaluates the stock market effects of events leading to the passage of the financial institutions reforms recovery and enforcement act of 1989 the evidence suggests that the signing of the act by president bush produced positive abnormal returns for both banks and s ls and that the addition of tougher capital standards produced positive returns for s ls in addition the act increased the risk of both banks and s ls

government size government debt and globalization this article empirically investigates the effect of globalization on government size and debt using panel heterogeneous cointegration techniques to a panel of developing and developed countries i

wagner s hypothesis in time series and cross section perspectives evidence from real data for 115 countries internationally comparable data on income and government expenditure for 115 countries covering the period 1950 80 are used to assess the validity of wagner s hypothesis individual country time series data and several intercountry cross sections are studied besides a tremendous diversity in the position for various countries the results indicate that while there is support for the hypothesis in some time series data sets such support is lacking in most cross section estimates much of the support for the hypothesis reported in many earlier studies therefore was probably due to either use of limited samples or inadequate data comparability across the observations studied copyright 1987 by mit press

do more open economies have bigger governments another look abstract we reconsider the evidence of a positive relationship between openness and the size of government recently established by rodrik rodrik d 1998 why do more open economies have bigger governments journal of political economy 106 997 1032 and others while the existing literature focuses on expenditure based measures of government we consider non budgetary measures such as government ownership of enterprises price controls asset expropriation each of these may have little impact on government expenditures yet can make the role of government sizable we demonstrate that the scope of government is much larger in less open economies when considering non budgetary measures additionally we show that higher levels of non budgetary government are positively correlated with trade barriers finally we provide further evidence on the hypothesis that larger governments provide social insurance in open economies subject to terms of trade shocks although we find that greater terms of trade risk is weakly associated with larger government in all forms these interventions include price controls and greater risk of asset expropriation which are hard to reconcile with a pure insurance motive

stock market reactions to the depository institutions deregulation and monetary control act of 1980 abstract this paper evaluates the effects of events leading to the passage of the depository institutions deregulation and monetary control act of 1980 the evidence suggests that the initial proposal of the act by then president carter and the final passage of the act by the house of representatives produced positive abnormal returns to stockholders of large commercial banks stockholders of small commercial banks and small savings and loans on the other hand generally experienced negative abnormal returns furthermore when hopes of passage of the act faced significant negative positive abnormal returns were experienced by stockholders of large small commercial banks

accounting for the racial gap in afqt scores comment on nan l maxwell the effect on black white wage differences of differences in the quantity and quality of education comment on nan l maxwell the effect on black white wage differences of differences in the quantity and quality of education industrial and labor relations review vol 47 no 2 january 1994 author s abstract

the curious attraction of wagner s law wagner s law of increasing state activity has recently been subjected to intensive use of recondite econometric testing procedures an examination of the relevant articles reveals ignorance both of wagner s definition of state activity and of his insistence that he was not engaged in prediction consequently the omission of public enterprises contained in wagner s definition leads to a model misspecification and the object of testing his hypothesiss remains obscure

trade liberalization through asset markets abstract political economy expositions of trade policy have traditionally described asset or factor ownership as not subject to change asset markets however allow individuals to change the composition of income sources we consider an economy with stochastic productivity to show how the equilibrium composition of asset portfolios influences individual attitudes toward free trade the model links financial market completeness and trade liberalization in the second half of the 20th century and provides a contributing answer to why governments in poorer countries without well developed financial markets have failed to liberalize trade

an examination of the impact of the garn st germain depository institutions act of 1982 on commercial banks and savings and loans this paper evaluates the effects of events leading to the passage of the garn st germain depository institutions act of 1982 the evidence suggests that the call for reform by president reagan s housing commission and the senate passage of the bill produced positive abnormal returns to stockholders of large savings and loans and commercial banks stockholders of small s ls and banks on the other hand generally experienced negative abnormal returns furthermore when hopes of passage of the act faded significant negative positive abnormal returns were experienced by stockholders of large small s ls and banks this study examines the impact of the passage of the garn st germain depository institutions gsgdi act of 1982 on commercial bank and savings and loan stockholder returns the gsgdi act represents one of two major revisions of the financial system over the last twenty years the other being the depository institutions deregulation and monetary control act of 19801 the proposal for such a change reflected the growing inadequacy of the regulatory structure of financial institutions to adapt to rapid changes in technology shifting consumer demands for financial services and extremely volatile interest rates efforts to reform the financial system resulted in passage of the gsgdi act of 1982 which included provisions seeking to improve both the implementation of monetary policy and the degree of equity in the regulation of financial institutions such improvements were intended to reduce the operational and financial risk of financial institutions a central issue in the economics of regulation is whether regulatory actions benefit the economic agents they are intended to benefit a large body of literature exists which examines the economic effects of regulation much of this literature has utilized the concepts and methods of welfare economics to assess the extent

age structure and trade openness an empirical investigation this study focuses on the relationship between age structure and trade openness we hypothesise that a higher share of the working age population in the total population increases trade openness because the dependent population tends to spend more than the working age population on non tradable goods such as education and medical services we estimate the effects of age structure on trade openness using panel data for 85 countries from 1991 to 2010 the empirical results show that the share of the working age population has a positive effect on trade openness an increase in the share of the working age population is considered to be one factor that contributed to an increase in trade openness in the sample period

ceba of 1987 and the security returns and market risk of savings and loan institutions a note abstract this article examines the market reaction to announcements leading to the eventual passage of the competitive equality banking act ceba of 1987 using portfolios of savings and loans negative announcement effects of the ceba legislation are observed for well capitalized savings and loans and positive announcement effects are observed for less capitalized savings and loans the evidence also indicates that the market risk for the less capitalized savings and loans decreased following the passage of the ceba legislation

interest rate deregulation and banks off balance sheet activities a hong kong perspective through the interest rate deregulation and banks off balance sheet activities obsas in hong kong this study investigates the debate over the impact of banking deregulation on banks risk taking behaviour on the one hand the arrow effect implies that increased competition caused by the interest rate deregulation motivates hong kong banks to speed up their development of obsas as an additional but riskier income source on the other hand the schumpeterian effect implies that the deregulation may reduce the banks financial capability in developing new products and thus downscale their obsa adoption our findings show that while the negative scale effect is statistically insignificant the interest rate deregulation has a positive and significant impact on the adoption rate for all obsa categories we therefore conclude that the interest rate deregulation unambiguously leads to riskier bank behaviour in terms of higher obsa adoption

a note on deposit rate deregulation super nows and bank security returns abstract this paper empirically investigates the effects on the weekly returns of almost 100 banking organizations of the december 1982 authorization of super nows examination of excess returns around the announcement date suggests that the announcement of the super nows had a statistically significant and negative effect and that the impact differed significantly by type of bank while returns for money center banks were generally unaffected excess returns for regional retail banks were highly significant

trade openness and government size abstract we examine whether trade openness influences government size using panel data we find no evidence of a positive relationship rather causality tests show that larger government size leads to lower openness the opposite of what rodrik rodrik dani 1998 why do more open economies have bigger governments journal of political economy 106 997 1032 hypothesized

the valuation effects of the 1977 community reinvestment act and its enforcement abstract we examine the wealth effects of the passage of the community reinvestment act cra of 1977 for commercial banks and savings and loan associations we find significantly negative average excess returns for small nyse amex banks and sl in contrast there is no evidence that large nyse amex institutions or nasdaq institutions experience wealth losses we also study the effects of individual cra protests against institutions and find they produce significantly negative excess returns which are not reversed when the protests are resolved our results have implications for proposed changes to cra and for the future consolidation of the financial services industry the results also demonstrate the difficulties associated with studying returns from the early years of the nasdaq market

the effect on black white wage differences of differences in the quantity and quality of education using data from the national longitudinal survey of youth for the years 1979 88 the author examines the extent to which black white differences in educational attainment educational quality and unmeasured individual ability can explain black white wage differences an analysis that corrects for both selectivity and ability biases inherent in estimating the education wage relationship shows that the main source of the black white wage differential is the racial difference in the quality rather than quantity of schooling in fact the author concludes closing the racial gap in the basic skills learned in school could reduce the wage differential by two thirds

openness country size and government abstract this paper shows that smaller countries have a larger share of public consumption in gdp and are also more open to trade these empirical observations are consistent with recent theoretical models explaining country formation and break up and may account for the observed positive empirical relationship between trade openness and government size

evidence on discrimination in employment codes of color codes of gender there is substantial racial and gender disparity in the american economy as we will demonstrate discriminatory treatment within the labor market is a major cause of this inequality the evidence is ubiquitous careful research studies that estimate wage and employment regressions help wanted advertisements audit and correspondence studies and discrimination suits that are often reported by the news media yet there appear to have been periods of substantial reductions in economic disparity and discrimination for example donohue and heckman provide evidence that racial discrimination declined during 1965 1975 1 gottschalk has produced statistical estimates that indicate that discrimination against black males dropped most sharply between 1965 and 1975 and that discrimination against women declined during the interval 1973 1994 2 but some unanswered questions remain why did the movement toward racial equality stagnate and eventually decline after the mid 1970s what factors are most responsible for the remaining gender inequality what is the role of the competitive process in the elimination or reproduction of discrimination in employment

citicorp travelers group merger challenging barriers between banking and insurance abstract the citicorp travelers group merger increased the prospects for new legislation to remove the barriers between banking and insurance resulting in a positive wealth effect for institutions most likely to gain from deregulation analysis of abnormal returns surrounding the merger show that life insurance companies and large banks excluding citicorp and travelers group have significant stock price increases while the returns of small banks health insurers and property casualty insurers are insignificantly different from 0 this analysis provides evidence that investors expect large banks and insurance companies to receive significant benefits from recent congressional legislation removing barriers to bancassurance

the reaction of bank stock prices to news of derivatives losses by corporate clients abstract from march through may of 1994 several large nonfinancial firms announced millions of dollars in losses from derivatives deals especially those arranged by bankers trust accompanying these announcements and related news stories were allegations that bankers trust had either misrepresented lied or deceived its clients using sur methods we investigate how these announcements affected bankers trust and three portfolios of banks dealers nondealers and nonusers our results indicate significant cumulative abnormal returns of 12 14 bankers trust 5 56 13 dealer banks and 2 45 32 nondealer user banks the evidence suggests an intra industry information transfer effect consistent with rational pricing the replacement cost of derivative contracts is an important factor in explaining the variation in abnormal returns across banks

the ethnic employment and income gap in sweden is skill or labor market discrimination the explanation this study uses a cognitive test score the swedish military enlistment test taken at age 18 to identify whether the ethnic employment and income gap in sweden is caused by a pre market skill gap and or ethnic discrimination the employment gap and income gap are estimated for males born in sweden with different ethnic backgrounds their parents were born in sweden or in southern europe or outside europe controlling for the cognitive test score does not affect the ethnic employment gap and for incomes the ethnic income gap almost disappears

testing wagner s law using disaggregated public expenditure data in the case of greece 1958 93 the factors that have influenced the growth of public expenditures have been the subject of extensive theoretical and empirical research the validity of wagner s law in the case of greece is tested using disaggregated public expenditure data for the period 1958 93 the methodology employed is that of cointegration and the related notion of error correction results reported here suggest that in the case of greece only the growth of defence expenditure may be explained in terms of wagner s law

keynes versus wagner public expenditure and national income for three african countries the public expenditure income hypothesis has long been debated in economics following keynes public expenditure is seen as an exogenous factor to be used as a policy instrument to influence growth on the other hand wagner argues that expenditure is an endogenous factor or an outcome not a cause of growth in national income the purpose of this paper is to apply both the granger and holmes hutton statistical procedures to test the income expenditure hypothesis for three african countries ghana kenya and south africa we find that the hypothesis of public expenditure causing national income is not supported by the data for these african countries

cointegration and wagner s hypothesis time series evidence for canada it is argued that wagner s hypothesis is essentially a proposition about the secular comovement of income growth and public spending using the engle and granger cointegration tests and time series data from canada the long run validity of wagner s hypothesis is maintained

risk and trade regimes another exploration an analysis of a small sample of countries shows that the higher the level of termsof trade risk that a nation faces in international markets the more likely it is to increase barriers the analysis also shows that the greater the availability of social insurance programs mounted by a nation s government the less likely it is to block free trade in comparison with the small open economies of western europe therefore developing countries may remain protectionist because they lack the resources to mount internal programs of transfer payments as a means of coping with risk from international markets

openness government size and the terms of trade this paper investigates the relationship between trade openness and the size ofngovernments both theoretically and empirically we argue that openness can increase the size of governments through two channels 1 a terms of trade externality whereby trade lowers the domestic cost of taxation and 2 the demand for insurance whereby trade raises risk and public transfers we provide a unified framework for studying and testing these two mechanisms our main theoretical prediction is that the relative strength of the two explanations depends on a key parameter namely the elasticity of substitution between domestic and foreign goods moreover while the first mechanism is inefficient from the standpoint of world welfare the second is instead optimal in the empirical part of the paper we provide new evidence on the positive association between openness and government size and we explore its determinants consistently with the terms of trade externality channel we show that the correlation is contingent on a low elasticity of substitution between domestic and foreign goods our findings raise warnings that globalization may have led to inefficiently large governments

didmca and bank market risk theory and evidence abstract this paper examines the theoretical and empirical consequences of the depository institutions deregulation and monetary control act of 1980 on the market risk of the us banking industry we survey several theoretical arguments linking deregulation of deposit interest rates to market based measures of bank risk capital market data for a sample of large commercial bank holding companies provides evidence that deregulation has accompanied increases in both systematic and nonsystematic measures of bank risk

a time domain transfer function model of wagner s law the case of the united kingdom economy the dynamic relationship which is implied by wagner s law is well established in the literature however the methodology which has been applied to investigate this dynamic relationship has tended to avoid a dynamic specification this paper investigates wagner s law employing transfer function methodology in the time domain for the uk over the period 1946 85

does the japanese stock market price bank risk evidence from financial firm failures the ability of the japanese stock market to appropriately price the riskiness of japanese financial firms has been frequently questioned particularly in light of japan s widespread financial distress in recent years and poor disclosure requirements this paper examines the response in equity returns of japanese banks to the failure of four commercial banks and two securities firms between 1995 and 1998 using event study methodology the analysis finds that share prices of surviving banks on the whole responded unfavorably to the failures and that financially weaker survivors were more adversely affected this suggests that despite the distress and alleged opaqueness bank shareholders were able to use available indicators of financial condition both to incorporate new information quickly into stock prices and to differentiate among banks

an analysis of divestiture effects resulting from deregulation capital market data were used to examine the divestiture effects pertaining to deregulation the dropping of antitrust charges and the reversing of the co insurance effect associated with the recent breakup of at t the empirical results of the study indicate that significant economic events took place during the breakup process which led to transfers of wealth from various parties to the securityholders of at t the results also indicate that the buffering effect of regulation was reduced as at t went through the total deregulation process this is in accordance with peltzman s prediction the focus of this research is an involuntary breakup split up or total divestiture of a major corporation in the economy at t the breakup of at t occurring on january 1 1984 provides an excellent opportunity to study both merger and acquisition theory in reverse as well as to analyze the impact of significant deregulation on a large corporation in the economy while several firms have involuntarily divested themselves of a division or subsidiary over the recent past the size of the divestiture is usually not significant enough to be observed in the returns to bondholders stockholders and third parties the recent large scale breakup of at t by court order occurred over a fairly long time period approximately two years which makes it possible to examine the effects of certain specific subevents with respect to the wealth transfer among the claimants of the firm it is also possible to draw some conclusions about the effects of deregulation on corporate investors in general by examining the returns behavior over the extended split up period capital market data were used to examine the divestiture effects pertaining to the breakup of at t many theoretical and empirical studies have analyzed the impact of mergers and acquisitions on the wealth of corporate investors on the theoretical side single period cash flow models preserving limited liability have been developed by baron 2 chen 7 higgins and schall 11 and brennan 5 on the empirical side work by mandelker 15 langetieg 14 and asquith 1 has investigated the effect of mergers on target and bidder stockholder returns the results of these studies warrant the following general conclusions a some of the wealth of premerger stockholders may be transferred to the bondholders of southern methodist university and the university of texas at dallas respectively we would

public expenditure growth in greece and portugal wagner s law and beyond in the tradition of wagner s law this study examines the relationship between aggregate income and public expenditures in greece and portugal during the years 1958 85 unlike more conventional specifications our analysis focuses on the movement of different componenets of public expenditures permanent income relative prices stabilization policy and socio political factors emerge as thomain determinants of public expenditures while the results reveal significant difference in responses to these determinants across components of expenditures and between the two countries

the incidence of regulatory rents in the motor carrier industry this article focuses on two questions in the debate over motor carrier regulation first did regulation create eliminate or have no effect on monopoly rents in the trucking industry second ifthere were rents what was their incidence were they received by owners oftrucking firms dissipated through higher costs or captured by the teamsters union data on share price responses to deregulation announcements reveal declines in expected profits of 8 19 of totalfirm value this suggests that regulation created monopoly profits and indicates that at least some of these rents accrued to owners of trucking firms firms responses to regulatory change are modelled as functions of company s operating characteristics and measures of unionization operating efficiency and service characteristics are shown to affect the impact of deregulation on share values

the wealth effects of interstate branching abstract this paper examines the wealth effects of a decision by the office of thrift supervision ots to permit interstate branching for federally chartered savings and loan associations slas an event study of key ots announcements in 1991 and 1992 is conducted based on samples of 38 federally chartered slas and 88 commercial banks large slas and commercial banks generally experienced significant positive wealth effects but little or no reaction was found for smaller depository institutions these findings provide early evidence that interstate branching powers for depository institutions under the riegle neal interstate banking and branching efficiency act of 1994 will tend to benefit large institutions accelerating the trend toward consolidation though without necessarily compromising the viability of smaller institutions

an analysis of intra industry differences in the effect of regulation the case of deposit rate ceilings abstract this study examines the impact of deposit rate ceiling changes on the market value of commercial banks and stock savings and loan associations statistically significant increases in market value are found on announcement of the removal of ceilings on large denomination certificates of deposit in contrast retail commercial banks and savings and loans experienced declines in value on announcement of the elimination or relaxation of deposit rate ceilings on small denomination consumer accounts in addition for all events analyzed significant differences were found in the effect of ceiling changes on the market value of wholesale and retail commercial banks

education and labor market discrimination using a model of statistical discrimination and educational sorting we explain why blacks get more education than whites of similar cognitive ability and we explore how the armed forces qualification test afqt wages and education are related the model suggests that one should control for both afqt and education when compar ing the earnings of blacks and whites in which case a substantial black white wage differential emerges we reject the hypothesis that differences in school quality between blacks and whites explain the wage and education differentials our findings support the view that some of the black white wage differential reflects the operation of the

the role of supervisors in the determination of wages and wage gaps this article considers labour market discrimination by supervisors as a potential contributor to racial and gender wage gaps empirical analysis reveals evidence that all workers except hispanic males earn significantly higher hourly wages when working for a supervisor of the same race and sex as themselves furthermore the results suggest that sex has a larger impact on wages than race for workers with white supervisors while race has a larger impact on wages than sex for workers with minority supervisors based on past research we theorize that the degree of labour discrimination workers face may also be dependent upon the location and size of the firm in which they are employed however decomposing the samples by firm location and size suggests that these two factors cannot adequately explain the observed matched supervisor worker wage effects which supports the notion that these wage effects are largely driven by factors other than supervisor discrimination