The value of a flow-through entity in an integrated corporate tax system

In an integrated corporate tax system, resident shareholders receive a tax credit for corporate tax paid that can be used to offset personal tax on dividend income. Nonresident and tax-exempt (pension plan) investors cannot use the tax credit on corporate dividends and thus prefer to invest in flow-through entities. We estimate the value of the flow-through entity to nonresident and pension plan investors by examining the price change around the date of an unexpected announcement of a change in tax law related to Canadian publicly traded income trusts units creating an entity-level tax that makes them no longer tax-favored to these investors.     

Right-to-Work Laws and Geographic Differences in Living Costs: Comment

A bstract . M. Reynolds and M. Edwards , commenting on R. J. Cebula's study of geographic differences in living costs in states with Right-to-Work Laws , seek to extend his results and explore the relevance of alternative variables. Cebula, in reply, addresses the comment and re-estimates the living cost impact of such laws, taking into account additional factors. Even after allowing for additional South/non-South differences , Cebula reports, the original basic model is resilient.     

The Bases of Compromise in the Workplace: A Theoretical Framework

Schemes for workplace participation have long been promoted and vilified. Such conflicting views have been brought into sharp focus by the highly variable results of such practices as teamwork. Yet a theoretical framework to grasp workplace co‐operation is lacking. This paper develops a framework on the basis of theory and a review of a wide range of empirical studies. Capital and labour each have two sets of ‘concerns’: over ‘control’ of the workplace and the longer term ‘development’ of the productive forces. Cross‐classifying these concerns produces a matrix of patterns of workplace relations. Each cell of the matrix represents a different combination of the interests of capital and labour. The matrix can be used to map participation schemes so as to capture their varying features. The next task, pursued elsewhere, is to identify the conditions leading to locations in different cells of the matrix.     

Keynes's theory of liquidity preference and his debt management and monetary policies

This paper seeks to bolster the view that Keynes was a monetaryeconomist concerned primarily with monetary and not fiscal policy.His most fundamental policy conclusion for national economieswas that the authorities could control the long-term rate ofinterest and should do so to promote investment, growth andemployment. Keynes's theory of liquidity preference is presentedas a theory of money as a store of value that leads to thisfundamental policy conclusion. The theory is then applied toexplain the debt management, monetary and international financialpolicies that were adopted in World War II.