bluuebunny/crossref_metadata_2025_split huggingface dataset:
The varieties of ‘right to work’. An essay in honor of W. H. Hutt
Authors: Baird Charles W. 
Published: June 2007

AbstractThere are at least three commonly asserted versions of the “right to work”: guaranteed employment, absence of union security in collective bargaining, and voluntary exchange. The first two versions are explained and critically evaluated. The third version is exposited and examined in depth beginning with a discussion of the criteria for voluntary exchange. The labor economics of W. H. Hutt, except possibly his views on the right to strike, is found to be based, both implicitly and explicitly, on the voluntary exchange version. Although American right to work laws seem to deny the right to enter some voluntary exchange contracts, Hutt supports them. His support is rationalized as an acceptable second best solution made necessary by the existence of the principle of exclusive representation in American labor law.
The wage – work bargain
Authors: Behrend Hilde 
Published: June 2007

AbstractThis paper examines problems which arise on the work‐side of the wage‐work bargain because the input of effort, time and necessary qualifications for jobs are not clearly defined in employment contracts. The paper looks at bargaining processes and the problems which are connected with these aspects, for instance, the existence of poor output and attendance standards but also those of overload in the expected input of effort, time and efficient performance.
W. H. Hutt's the economics of the colour bar
Authors: Roback Jennifer 
Published: June 2007

Abstract[The] purpose [of The Economics of the Colour Bar] is not to provide an up‐to‐date account of the racial situation in South Africa. It simply uses the experience of that country in an attempt to expose the ultimate origins of colour injustices generally. Similar origins can, I suggest, be discerned for all colour, racial, caste, class or similar injustices wherever they may existFrom the Foreword, p. 5. All quotations are from W. H. Hutt (1964). The Economics of the Colour Bar: A study of the economic orgins and consequences of racial segregation in South Africa, London: André Deutsch, unless otherwise noted.
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Hutt's views on money
Authors: Kantor Brian 
Published: June 2007

AbstractW. H. Hutt did not accept Keynesian assumptions of rigid prices. Nor did he concur that the level of demand for money and credit could impact on the role of prices as a co‐ordinating mechanism. He did, however, distinguish between real money and money units (nominal money) and what he called ‘moneyed demand’, the rate of expenditure of money units similiar to Keynes's ‘effective demand’. Banks were dealers in money who could dilute or condense it, thus impacting on the general price level. Banks sacrifice yield if they are not fully loaned‐up, but this does not imply that fractional reserve banking leads to inflation. Absent convertability into a commodity standard, however, that is given government suspension of convertability inflation is then inevitable unless a strict policy of money neutrality is followed by the authorities. The implementation of such a rule is difficult, and while price flexibility would have accomplished the necessary adjustments, Hutt had not progressed towards today's theories of expectations, which might have made his views more tenable at the time of writing.
The end of central planning and self‐management?
Authors: Sirc Ljubo 
Published: June 2007

AbstractIn real life, planning turns out to be impossible not just because a planning authority cannot handle the enormous number of relevant items, but also–and even more importantly–because the consequences of economic decisions stretch into the future and the planners are badly equipped to judge the future developments impinging on individual enterprises. It becomes imperative that enterprises be autonomous and their activity co‐ordinated by markets. Collectivists therefore switch to the idea that such enterprises should be run by the collectives of their workers. But it is well nigh impossible to give the workers the right motivation and to impose on them the responsibility for the results of their enterprises.
Economists and the politician
Authors: Seldon Arthur 
Published: June 2007

AbstractOne of Bill Hutt's lesser‐known books instinctively reflected the rapidly growing development of what was originally labelled ‘non‐market decision‐making’, now established as ‘public choice’, but better described as the economics of politics.His 1971 Politically Impossible ⃛ ? (IEA, London) confronted head‐on the frequent objections of politicians that economists' proposals could be both desirable and yet impossible to implement. ‘Politically impossible’ was the objection that had made economic proposals still‐born and inhibited economists from searching for truth.Politicians exhibit the occupational failing of wanting policies that are easy to sell to the electorate more than policies that are generally desirable. Hutt argued that proposals are resisted or rejected not because they are unacceptable by the public but because politicians fail in the power they claim to persuade the public of their advantages.Proposals for political reform are opposed by prospective losers but not supported by prospective winners. Economists interested in advising government therefore have to propose reforms that embrace a wide range of interest, so that the winners and losers cannot readily assess their gains and losses and organise to influence legislatures. But the best hope lies outside the political process in the market process by social advance that enable citizens as consumers to escape from vested interests to competitors in open markets and in technological change that weakens the ability of the interests to inhibit competition from new suppliers.Ultimately the political obstruction lies not with politicians, who must be expected to pursue personal interests, but with the political process that enables them to do so at the expense of the public interest.How far the remedy in different countries lies in constitutional reform to discipline politicians and in opening markets to weaken obstructive interests remains the question for economists and political scientists.
Product diffusion, product differentiation and the timing of new product introduction the television and VCR market 1964‐85
Authors: Putsis Jr William P. , 
Published: June 2007

AbstractAn econometric model of the demand and supply of color televisions, black and white televisions and video cassette recorders in the United States from 1964 to 1985 is developed and estimated. Supply and demand parameter estimates are obtained using a simultaneous equation system estimated by three‐stage least squares. The model employed integrates theories of product diffusion from the marketing literature with those of the economic literature on discrete choice. Particular attention is paid to the relationship between product saturation and demand, as well as to supply decisions pertaining to product differentiation and the timing of new product introduction. The central hypothesis that product differentiation and new product introduction are more likely to occur as demands for established products slow at critical saturation levels is supported by the empirical results and actual market occurrences.
Implications of quality standard regulation for multiproduct monopoly pricing
Authors: Kluger Brian D. 
Published: June 2007

AbstractAn important concern of regulatory agencies is the quality and variety of products offered for sale. This paper considers the effects of introducing quality standards in a monopolized market where the monopoly sells a range of qualities of a product to consumers with varying taste for quality. The introduction of a minimum acceptable quality can alter the entire price and quality schedule offered by the monopolist. Both a uniform and a more general distribution of consumers are studied to examine these changes and their implications for general welfare.
Interim audit scope, client size and client familiarity: An empirical analysis
Authors: Livnat Joshua , Melnik Arie 
Published: June 2007

AbstractThis study investigates the scope of an audit conducted during the first part of the annual auditing cycle. It measures empirically the probability of auditing various balance sheet and income statement accounts. The results indicate that current assets and liabilities have a higher probability for an interim audit than fixed assets, long‐term debt and equity accounts. Furthermore, the likelihood of including each account in an interim audit increases with client size, so the larger an auditee, the wider the audit scope during the beginning of the audit cycle. Also, the empirical results indicate that the lower the familiarity of the auditor with the auditee, the wider the scope of an interim audit. These results seem to be consistent with auditing theory and intuition.
A note on the role of the average cost curve in the neoclassical theory of the firm
Authors: Ashton R. K. 
Published: June 2007

AbstractA number of influential authors have argued that the long‐run average cost curve has only a limited role in the theory of the firm. This note examines this claim in more detail. It argues that the curve has an important role in determining long‐run equilibrium as it provides an important ‘signal’ to agents in the capital and product market about the extent to which an industry is in disequilibrium. The effect of removing the certainty assumption is then examined and it is argued that the average cost curve is an important input in the assessment of operating risk.
Responsibility accounting and asymmetry of information
Authors: Callen Jeffrey L. , Livnat Joshua 
Published: June 2007

AbstractThis paper uses the principal‐agent model to show that a manager's optimal compensation should generally include non‐controllable factors of production such as the firm's investment in capital. This implies that the managerial accounting distinction between profit and investment centres is artificial. Examples are shown in which the ROI or RI criteria could be optimal for compensating managers implying that the optimal compensation criterion is very much specific to the firm's production and risk parameters. Thus, the debate about which criterion is more appropriate is vacuous.
A generalization that makes useful the dorfman–steiner theorem with respect to advertising
Authors: Levy Haim , Simon Julian L. 
Published: June 2007

AbstractDorfman and Steiner's theorem is trivial with respect to advertising because it deals with only one period. It simply says that a firm should stop with that volume of advertising at which an additional dollar of advertising just produces an additional dollar of net revenue. This note generalizes the theorem to the meaningful multi‐period situation in which the effect of advertising is lagged. The optimizing decision rule is to advertise up to the point at which f′(At) = 1 ‐ bd, where A stands for advertising, b for the customer‐rentention factor, and d for the cost‐of capital discount factor.
The mode of corporate diversification: Internal ventures versus acquisitions
Authors: Amit Raphael , Livnat Joshua , Zarowin Paul 
Published: June 2007

AbstractThis study investigates empirically the underlying motives for selecting the mode of corporate diversification and attempts to match the form of capital investments with a corresponding theoretical rationale for diversification. The empirical results seem to support both the transaction‐costs rationale for diversification and the motive that arises from a firm's prior experience with each form of capital investment. However, the empirical findings are inconsistent with the explanation that is based on the owner‐manager conflict of interest.
Optimality and the government's risk management programs
Authors: Willett Keith 
Published: June 2007

AbstractThis paper examines the optimality of the government's risk management programs in the area of environmental policy. A model of risk management for the government is developed under the presumption that the objective of risk management is avoidance of damages from two general classes of pollutants. This model is then used to make direct comparisons between solutions to the government's social welfare maximization problem and Pareto‐optimal outcomes. The underlying economic rationale for each of the different outcomes is also discussed.
Trends in the use of management science techniques in capital budgeting
Authors: Pike Richard , Sharp John 
Published: June 2007

AbstractThis paper examines trends in the use of management science techniques for capital investment decisions based on three surveys conducted on the same 100 large UK firms between 1975 and 1986. A strong increase in the uptake of these techniques is reported, which may partly be explained by the recent developments in end‐user computing and investment software. The logistic forecasting model is employed to examine the trend and to forecast usage in the 1990s.
A quantitative approach to corporate social responsibility programme formulation
Authors: Brice Helene , Wegner Trevor 
Published: June 2007

AbstractThis paper proposes a quantitative methodology to support executive decision making in the allocation of scarce resources to competing demands in the area of Corporate Social Responsibility (CSR). The Analytical Hierarchy Process is used to translate subjective value judgements such as preferences and perceptions into quantitative measures. These utility values are then used to isolate the factors which determine the choice among the competing CSR programmes. The approach is illustrated with two case studies of South African organizations.
Artificial intelligence, heuristic frameworks and tabu search
Authors: Glover Fred 
Published: June 2007

AbstractThis paper examines some of the characteristics of AI‐based heuristic procedures that have emerged as frameworks for solving difficult optimization problems. Consideration of attributes shared to some degree by human problem solvers leads to focusing in greater detail on one of the more successful procedures, tabu search, which employs a flexible memory system (in contrast to “memoryless” systems, as in simulated annealing and genetic algorithms, and rigid memory systems as in branch and bound and A* search). Specific attention is given to the short‐term memory component of tabu search, which has provided solutions superior to the best obtained by other methods for a variety of problems. Our development emphasizes the principles underlying the interplay between restricting the search to avoid unproductive retracing of paths (by means of tabu conditions) and freeing the search to explore otherwise forbidden avenues (by aspiration criteria). Finally, we discuss briefly the relevance of a supplementary framework, called target analysis, which is a method for determining good decision rules to enable heuristics to perform more effectively.
Designing a preferred bidding procedure for securing electric generating capacity
Authors: Duann Daniel J. 
Published: June 2007

AbstractThe use of competitive bidding by electric utilities to solicit new generating capacity from nonutility power producers is increasingly viewed as a promising alternative to traditional cost‐based regulation. If economic efficiency is the criterion in setting up a bidding procedure and existing characteristics of competitive and diversified bidders remain, a second‐price sealed bidding procedure with a fixed‐price power purchase contract containing energy cost‐sharing provisions appears to work best.
On the unavoidability of ‘unscientific’ judgment in estimating the cost of capital
Authors: Thompson Howard E. , Wong Wing K. 
Published: June 2007

AbstractEstimating the cost of capital using DCF methods requires forecasting dividends. This paper shows that past dividend behavior may support more than one reasonable forecasting model and that reasonable forecasting models can lead to divergent estimates of the cost of capital. We find no way of selecting the best cost of capital estimate. Any choice must ultimately be based on ‘judgment’ of the analyst.
Market response to changes in attributes of a long‐distance passenger rail service
Authors: Johnson Lester W. , Nelson C. J. 
Published: June 2007

AbstractThis paper reports on the development of a model designed to predict market response to a range of service alternatives that could be offered by an Australian long‐distance passenger rail service known as the Indian Pacific. The approach is based on an aggregate version of the multinomial logit choice model using stated‐preference data. Details of the model's specification and estimation are presented and the predictive ability and implications of the model are discussed.
A study on the wealth effects of irish takeovers and mergers
Authors: Murray Louis C. 
Published: June 2007

AbstractThis paper presents the findings of an empirical study on the share‐price effects of takeovers and mergers on the Dublin Stock Exchange. The population under study consists of all acquisitions during the period 1965–83, and it is limited to those instances in which both partners were quoted and traded on the exchange. The Market Model has been adapted to take account of market inefficiencies. Any findings are evaluated in the light of other reported research.
Premiums paid in block transactions
Authors: Mikkelson Wayne H. , Regassa Hailu 
Published: June 2007

AbstractWe document the premiums over market price paid in negotiated third‐party purchases and negotiated repurchases of blocks of common stock. The blocks range from 1.5% to 44% of outstanding shares and the average premium is approximately 10%. There is no significant difference between the premiums paid by managers in block repurchases and the premiums paid by outsiders in block purchases. Repurchasing managers pay a premium that corresponds to the market value of control associated with the block.
Shark repellents and the role of institutional investors in corporate governance
Authors: Agrawal Anup , Mandelker Gershon N. 
Published: June 2007

AbstractThis paper examines the role of institutional shareholders in monitoring managers when they propose antitakeover charter amendments (shark repellents). These proposals provide a rare opportunity to examine this issue since they can be adopted only by shareholder approval. We document a positive relationship between the ownership of institutional shareholders and the stock market reaction to the announcement of antitakeover amendments. This finding is consistent with the Demsetz (1983) and Shleifer and Vishny (1986) proposition that large blockholders reduce the free‐rider problem associated with monitoring managers.
Is economic efficiency the driving force behind mergers?
Authors: de Bondt Werner F. M. , Thompson Howard E. 
Published: June 2007

AbstractSome economists routinely argue against government regulation that limits the number of mergers and acquisitions. They believe that, as a matter of empirical fact, almost all mergers enhance economic efficiency. The possibility that some mergers do not create wealth but merely redistribute it is ignored. We study all companies delisted from the New York Stock Exchange for reason of merger since 1926. We find that economic efficiency cannot easily explain merger waves. Contrary to the disciplinary hypothesis, acquisition targets are not, in large majority, poor stock market performers. We also report evidence consistent with stock market undervaluation as a merger motive.
Cross‐ownership as a hostage exchange to support collaboration
Authors: Perotti Enrico 
Published: June 2007

AbstractThe impossibility of writing complete contracts causes loss of profitable transactions among firms, since their managers cannot ex ante bind themselves to future actions. We show how a reallocation of ownership rights into a network of mutual shareholdings among a coalition of firms produces an efficient enforcement mechanism. Co‐operation is achieved by exchanging control rights until a mutual threat of capture of control is established. By making control over their firms vulnerable to a takeover by the other members of the coalition, each firm is able to make a credible commitment to future efficient actions. In equilibrium no punishment is administered, so that the arrangement achieves the outcome under complete contracts. More generally, it is proved that a mutual hostage exchange may dominate the threat of loss of reputation as an enforcement mechanism.
Executive compensation and the performance of the firm
Authors: Lewellen Wilbur , Loderer Claudio , Martin Kenneth , Blum Gerald 
Published: June 2007

AbstractA sample of large industrial corporations is examined to determine whether there is a relationship between the levels of compensation received by the senior executives of those firms and the firms' economic performances. We find consistent evidence of such a relationship, with differences across firms in the total compensation of their three highest‐paid officers being positively related to differences in both the common stock returns and operating profitability of the firms. The implication is that compensation packages are designed to reduce agency costs.
Horizontal shareholding interlocks
Authors: Flath David 
Published: June 2007

AbstractHorizontal shareholding interlocks induce Cournot industries to restrict production. The cartelizing effects of horizontal shareholding interlocks are greater if firms are mindful of indirect shareholding links than if only attentive to direct links. Indirect shareholding exists when a firm A holds stock in B and B holds stock in C. Several algebraic examples of Cournot industries with shareholding interlocks are explored.
Decision making in mergers: An application of the analytic hierarchy process
Authors: Bagchi Prabir , Rao Ramesh P. 
Published: June 2007

AbstractA critical element in the success or failure of an acquisition outcome is the ability to identify compatible acquisitions. This study focuses on the operational problem of effectively ranking a set of potential acquisition candidates against a multivariate set of attributes. The paper illustrates the usefulness of the Analytic Hierarchy Process methodology in this regard. The model is fairly easy to use and is flexible enough to permit the decision maker to consider multiple viewpoints and multiple attributes that may be qualitative or quantitative in nature. The suitability of the model is illustrated by applying it to a hypothetical example.
Accounting methods and managerial discretion: The case of dollar‐value LIFO
Authors: Shaftel Timothy L. 
Published: June 2007

AbstractThis paper focuses on inconsistencies in cost‐flow behavior associated with the use of dollarvalue LIFO. These inconsistencies can lead to confusing inventory valuations, potentially misleading accounting reports, incorrect purchasing decisions, and unanticipated tax results. Understanding these effects will enhance the use of dollar‐value LIFO as a management tool and will improve the interpretation of financial accounting information. With dollar‐value LIFO for multiple items, much of the conventional wisdom about LIFO vanishes. The relationships among inventory purchases, inventory liquidations, and gross margin are derived.
Competition under continuous technological change
Authors: Tang Ming‐Je , Zannetos Zenon S. 
Published: June 2007

AbstractThis paper examines competition patterns and competitive strategies when technology changes continually. It first discusses optimal behavior for investment in technology. It is argued that although technological innovations supersede existing technologies, there are economically justifiable barriers to investing in the new technologies. These economic barriers, coupled with continuous technological change, have implications for certain aspects of strategy, such as entry by means of new technologies, timing of entry, leapfrog‐type competition, vertical integration, the productivity dilemma, and escalating commitment. Finally, the industrial transformation of the steel industry is used as an example to illustrate these implications.