A Generalized Simple Formula to Compute the Implied Volatility

This paper provides a direct method of obtaining an accurate estimate of the implied volatility of a call option. It adds a quadratic adjustment term to an already-known formula for at-the-money calls, previously developed by Brenner and Subrahmanyam [3]. The adjusted formula is quite accurate for options no more than 20 percent in- or out-of-the-money and is simple to program and compute.     

The Metamorphosis of Australian Industrial Relations

This article outlines the current processes of change in Australian industrial relations - processes whose ultimate direction and effects are unforeseeable. The traditional dominance of conciliation and arbitration tribunals is giving way to more devolved arrangements. Some protagonists of change envisage a move towards collective bargaining, with trade unions having a pervasive and secure role; others believe the place of unions is in question. The impulse for change comes partly from market-oriented ideology, but this is not extensively discussed, A second source is the desire of the Australian Council of Trade Unions and the Labor Government to determine wage policy jointly, with the role of the Australian Industrial Relations Commission being essentially that of implementation. Also important is a widely held view that reform of industrial relations is a path to better productivity performance. The paper discusses the justification for that view. Various questions remain to be answered. These include the possibility for enduring wages policy; the legal framework necessary for bargaining; the nature of the industrial relations system of non-union enterprises; and the congruence of enterprise bargaining with the structure of trade unionism.     

A dynamic almost ideal demand system incorporating consumer expectations

In this paper a theoretical framework is presented for the analysis of the effects of psychological, perceptual or expectational factors on household expenditure within a complete demand system. The model was estimated using the Consumer Sentiment Index, which represents an index of consumer perceptions of economic conditions. Evidence was found for significant expectational effects on five of nine expenditure categories—food at home, alcohol, housing, durables and other services. The direct expectation effects were found to be small in size. The results demonstrate the model's potential usefulness as a framework for modelling consumer behavioral responses to expectations and for evaluating the welfare implications of policy-induced changes in expectations.     

The benefits and costs of the deferral of U.S. Taxes on retained earnings of controlled foreign corporations

This paper develops and applies a model to measure the effects of deferral on world and U.S. incomes. It is assumed that elimination of deferral would be accompanied by a compensating reduction in the U.S. corporate income tax rate which would leave the overall tax burden of corporations unchanged. The results of the model support several conclusions: Deferral has a positive net effect on world income, but has a negative effect on U.S. income; over two-thirds of the income gains of foreign countries due to deferral goes to developed or oil-exporting countries; and the Tax Reform Act of 1976 has roughly doubled the importance of deferral.     

The System of Land Rights in Nigerian Agriculture

A bstract . Land ownership in the agricultural sector of the Nigerian economy is basically communal. Under this system the land holding group is the family, clan, village or community. An important practice under communal ownership is the principle of inalienability of land. The mobility of the agricultural labor force is inhibited. Non-provincials are forbidden to plant cash crops. Property rights to land are not specific. Individualized allotments are absent and land markets non-existent. Other details of the communal system of land tenure in Nigeria are given. Reasons are sought for the persistence of custom in the practice of inalienability of land even when economic conditions have changed, enabling the right perception of land values.