The Financial Stakes in Due-On-Sale: The Case of California's State-Chartered Savings and Loans

On August 25, 1978 the California Supreme Court ruled that enforcement of due-on-sale clauses unduly restricts the right of homeowners to sell their homes. On June 28, 1982, the U.S. Supreme Court ruled that the Federal Home Loan Bank Board could permit due-on-sale enforcement because such enforcement was important to the financial stability of savings and loans. Both courts' decisions, though contrary in their effect on the clause, are based on the economic importance of the clause. Just how important is the clause? This paper calculates how much money the 1978 California decision (Wellenkamp) transferred from affected savings and loans to homebuyers. The yearly transfer by 1981 is estimated at between $58 and $170 million. For the lenders, this amounts to between a tenth and a quarter of total 1981 losses. For affected homebuyers, the savings average 25% of mortgage interest payments. On the basis of these calculations, both courts are correct about the importance of the clause.     

An empirical investigation of different strategies for material requirements planning

Master production scheduling, component lot sizing, and capacity requirements planning represent three important modules of material requirements planning (MRP) systems. Coordinating these three modules has been largely dependent on managerial judgment and experience. In this research, five different strategies for integrating these modules are empirically investigated. These strategies differ mainly in the extent to which the modules are coordinated. The impact of the shop, product, component and cost characteristics is measured by varying ten experimental factors. The research findings so obtained provide several guidelines on the effectiveness of each strategy in different environmental settings.     

The Scope of the Grants Economy and Income Distribution: An Examination of Intergenerational Transfers of Income

A bstract . Private transfers of income between family members have had significant equalizing effects on the distribution of income in the United States but only recently have they become a subject of research and an element of analysis. Some of the major theoretical developments in the area of income distribution and intergenerational mobility in the rich literature of the grants economy are reviewed. Among the effects of family transfers on income distribution, the most critical considerations in intra-family transfers, tentative results indicate, are those that relate, directly or indirectly, to investments in children during their formative years. Estimates of the size of family transfers include one that in a single year their total was of the magnitude of 30.7 percent of gross national product and another that in 1980 they were 70 percent of total transfers, amounting at least to 1 trillion. Trends in their level and structure are projected.     

New product process activities and project outcomes

The new product process comprises the set of activities that move the product from idea to launch. The authors investigated the new product process activities of firms in Australia, England and Belgium. Objectives of the research were to determine—what activities are undertaken in the new product process? How proficiently are these activities performed and what improvements are needed? whether the sorts of activities undertaken and their proficiency affect project success or failure. Since these activities are largely under the control of management, the deeper is our understanding of new product process activities, the greater the scope for improved product innovation management.     

Optimality and consistency in a differential game with non-renewable resources

Imperfect competition amongst buyers for a non-renewable resource is modeled as a Stackelberg differential game. The buyers may act as a cartel or behave non-cooperatively in setting tariffs, which the sellers take as given. The buyer's optimal policy is not consistent when extraction costs depend on the stock level. Both optimal and consistent, unit and ad valorem tariff's are analyzed. When a buyers' cartel uses a consistent tariff, the sellers may prefer to behave as perfect competitors or a monopolist, depending on the functional form of demand and cost. Non-cooperative buyers who are constrained to act consistently are unable to extract any rent from competitive sellers.     

Getting results from your MRP system

The many installed MRP systems have not been universally successful. A study of companies using MRP reveals just how the system should be implemented to achieve its full potential.