The price of Cherokee removal

In this paper, we estimate the social costs and income transfers of Cherokee removal, i.e., “The Trail of Tears.” Our cost estimates provide several new insights into this extensively studied topic. First, our estimate of the number of removal-related fatalities is considerably lower than the commonly accepted figure of 4000. Second, the uncompensated value of ceded Cherokee land in the southeast was the largest cost borne by the Cherokees, followed in magnitude by the value of lost agricultural output due to removal. Third, American taxpayers paid for roughly 44% of the total social costs of removal. Also, the cost burden of Cherokee removal, as a share of 1 year's GDP, was greater for the Cherokees than the cost burden of any major war for the American population.     

State competition in higher education: A race to the top,or a race to the bottom?

How does competition affect higher education? This paper explores this question for public and private universities. Theory indicates that competition can push higher education policy in one of two different directions. On the one hand, competition may increase spending. For states, this would occur if states treat higher education as developmental; for private universities this would occur if they view spending as a means to attract students and prestige. On the other hand, competition may decrease spending if states treat higher education spending as redistributive, and competition may decrease spending by private schools if lower spending enhances their ability to attract students with low tuition. To determine which of these perspectives is most valid, we examine higher education policy choices in the 1980s and 1990s. We find that states appear to act as if higher education funding is redistributive while private schools appear to compete more on the basis of tuition than spending. These results demonstrate the important effects competition and governance structure have on higher education.Received: August 2001, Accepted: May 2002, JEL Classification: I2, I22, H72, I3     

AIDS is your business

If your company operates in a developing country, AIDS is your business. While Africa has received the most attention, AIDS is also spreading swiftly in other parts of the world. Russia and Ukraine had the fastest-growing epidemics last year, and many experts believe China and India will suffer the next tidal wave of infection. Why should executives be concerned about AIDS? Because it is destroying the twin rationales of globalization strategy-cheap labor and fast-growing markets--in countries where people are heavily affected by the epidemic. Fortunately, investments in programs that prevent infection and provide treatment for employees who have HIV/AIDS are profitable for many businesses--that is, they lead to savings that outweigh the programs' costs. Due to the long latency period between HIV infection and the onset of AIDS symptoms, a company is not likely to see any of the costs of HIV/AIDS until five to ten years after an employee is infected. But executives can calculate the present value of epidemic-related costs by using the discount rate to weigh each cost according to its expected timing. That allows companies to think about expenses on HIV/AIDS prevention and treatment programs as investments rather than merely as costs. The authors found that the annual cost of AIDS to six corporations in South Africa and Botswana ranged from 0.4% to 5.9% of the wage bill. All six companies would have earned positive returns on their investments if they had provided employees with free treatment for HIV/AIDS in the form of highly active antiretroviral therapy (HAART), according to the mathematical model the authors used. The annual reduction in the AIDS "tax" would have been as much as 40.4%. The authors' conclusion? Fighting AIDS not only helps those infected; it also makes good business sense.     

The influence of colour on visual search times in cluttered environments

Fifty subjects participated in a series of visual search tasks where the aim was to explore the influence of colour on visual search times for targets situated in a series of cluttered distractor fields. The results supported previous findings regarding the effect of colour and showed that, even in cluttered environments, certain hues helped in the reduction of search times. The findings also indicated that there were interaction effects between the colour and positioning of the targets in the distractor fields.