The contribution of nonhomothetic preferences to trade

This paper estimates the economic significance of preference nonhomotheticity in international trade. Tastes are assumed to be identical, but budget shares depend on per capita income. A linear expenditure system is estimated for 34 countries over 11 commodity aggregates. A counterfactual exercise is conducted to estimate the volume of trade caused by deviations from homotheticity. The results indicate that nonhomothetic preferences may account for as much as one-quarter of interindustry trade flows.     

STRATEGY AND ORGANIZATION THEORIES: COMMON FORMS OF DISCOURSE*

Attempts at developing a taxonomic classification scheme for knowledge in the area of strategy contain major shortcomings. With the aim of breaking through the limitations inherent in these classification efforts, this article rejects the idea that strategic discourse is autonomous, and proposes instead that organization theories be considered, since these allow for the development of discursive forms in the field of strategy. Four types of strategic discourse are identified; these are the classical, contingency, socio-political and socio-cognitive forms. the authors also stress the importance of developing a critical form of discourse in this area of study.     

Factors Associated with Differences in the Magnitude of Abnormal Returns Around NYSE Versus Nasdaq Firms' Earnings Announcements

This study provides an explanation for the 'exchange effect' puzzle documented in prior accounting research. Grant (1980) finds that the magnitude of earnings announcement week abnormal returns is higher, on average, for firms traded over-the-counter than for NYSE firms. Atiase (1987) shows that this incremental 'exchange effect' persists even after controlling for firm size. We investigate potential explanations for this incremental exchange effect. We first show that even after controlling for differences in firm size, Nasdaq firms have less rich information environments and enjoy greater growth opportunities than NYSE firms. We then investigate whether differential predisclosure information environments and/or growth opportunities can explain the incremental exchange effect. The results indicate that although the absolute magnitude of the earnings announcement-related abnormal returns is inversely related to proxies for the amount of predisclosure information, the incremental exchange effect cannot be explained by differences in the predisclosure information environment. In contrast, after controlling for differences in growth opportunities across NYSE versus Nasdaq firms, and investors' heightened sensitivity to Nasdaq firms' growth opportunities in particular, there is no significant incremental exchange effect (whether or not we control for predisclosure information). These results suggest that the incremental exchange effect puzzle documented in prior research is more likely to reflect growth-related phenomena than differences in the predisclosure information environment.     

A goal programming model for achieving racial balance in public schools

This paper develops a goal programming model for achieving racial balance in segregated public schools. The model is illustrated and offered as an improvement upon linear programming, a model previously applied in the literature which allows a single objective function only and, in comparison with goal programming, requires more variables and constraints. Goal programming, a member of the general multiple objective linear programming (MOLP) model, improves upon these among other disadvantages thereby emerging as a more efficient tool for student assignment problems.