The entropies: Some roots of ambiguity

Entropy concepts have developed in four general contexts—thermodynamics, communication theory, statistical information theory and social and life sciences. These concepts have five distinct mathematical forms. Ambiguity and complexity in utilization of the concept has been heightened by this multi-faceted heritage. Effective utilization may be strengthened by a sharper articulation of entropy through combinations of literal, mathematical and graphical modes of expression. Geography and planning as user disciplines have important responsibilities in enhancing cross-disciplinary communication of this important adisciplinary concept. Implications of these arguments for the social sciences include the need for caution in drawing social analogies from the ambiguous entropy concepts of statistical mechanics; and an indication of the potential benefits of social science models based on the unambiguous entropic constructs of statistical information theory.     

Alternative Approaches to Compensation and Producer Rights

When policies are changed, it is not uncommon for losers to be compensated. Economic theory and quantitative analysis are useful in determining the efficiency gains/losses associated with a policy change, but are little help in deciding what the approach to compensation should be. The amount of compensation varies, depending on, in part, the political clout of the parties being negatively affected by a policy change—compensation is what politicians and the sector demanding compensation can agree on. We formulate four approaches to producer compensation within the context of the Ontario Tobacco Transition Program, where producers would have suffered losses in the absence of compensation. The approaches range from providing zero compensation to providing compensation based on the entire value of the tobacco quota. The Canadian government chose the latter and compensated producers for the termination of the tobacco quota program based on an approach that far exceeded other possible compensation approaches.     

A Matter of Principle: Recent Developments in Hungarian Accounting Thought and Regulation

This paper provides, against a review of prior literature on the problems faced by economies in transition from plan to market, an analysis of developments in Hungarian accounting regulation during the past 15 years. Significant legislative events are examined, as well as gradually shifting attitudes of the key players involved in the regulatory processes. We identify a number of obstacles to the development of a regulatory framework suitable to provide decision-useful accounting information, among which the roles and attitudes of the legislator and the accounting profession feature prominently, as well as the lingering influence of taxation on accounting, and of other Continental European, code-law regulatory and accounting features. We conclude that a reduction of the influence of government and legislation is required, as well as a more progressive approach in the education and training of accountants. This should focus on the teaching of a new way of thinking and move away from the traditional teaching of detailed accounting methods.     

The nonequivalence of tariffs,import quotas,and voluntary export restraints

This paper compares the equilibrium levels of prices, imports, production and consumption under a tariff, an import quota, and a voluntary export restraint when each trade restriction is set so as to lead to the same quantity of imports. Competitive, domestic production monopoly, import monopoly, and export monopoly cases are examined. Voluntary export restraints are shown to have different effects than import quotas or tariffs, especially when some potential exporters remain outside the agreements.     

Acquisition of Additional Equity Capital by Small Firms – Findings from the National Survey of Small Business Finances

While the importance of venture capital to the growth of small firms has been widely discussed during the past decade, little is known about the acquisition of additional equity capital, especially internal equity capital, by the majority of small firms in the U.S. This paper utilizes the information collected in the Federal Reserve Board’s 1993 and 1998 Small Business Finance Surveys to investigate the acquisition of additional equity capital by small firms. While the importance of public issue markets and venture capital investment in promoting the growth of small dynamic firms cannot be denied, the importance of external equity capital seems to be overstated. Only a very small number of small firms acquired additional external equity capital. It is the internal equity capital, not external, equity, that is one of the major financing sources for most small firms. We found that younger, lower quality firms were more likely to acquire additional internal equity capital than other firms. There appeared to be a “pecking order” of borrowing from internal sources to traditional lenders to non-traditional lenders. In addition, internal equity capital and debt acquired from traditional and non-traditional lenders appeared to be complementary financial resources.     

The Hungarian Cocktail of Competition Law and Consumer Protection: Should It Be Dissolved?

Hungary, a candidate country expecting to join the EU in 2004, has to approximate its laws and economic policies to those of the EU. However, it is not certain whether the Brussels standards will always improve national rules.This article will discuss one possible case. It concerns the special Hungarian legislation on competition law and certain consumer protection rules in the Competition Act of 1990 and the amended Act of 1996. The inclusion of rules governing consumer interests in the Acts greatly contributed to the recognition and the enforcement of consumer interests in Hungary.Nevertheless, the European Commission and the OECD increasingly argue that the Hungarian Office of Economic Competition should pass its competence in consumer related cases to another institution and instead pay more attention to more prominent fields of competition law such as horizontal agreements and mergers.This article will contest this argument. Although it is an understandable approach, there are several reasons why it should be carefully reconsidered. These include the position of consumers, which is still weak, the general system of consumer protection in Hungary, and the strong standing of the Office for Economic Competition. The comprehensive nature of the Hungarian Competition Act of 1996 is one of the cases in which the European guidelines should be considered with caution in order to determine whether their implementation would improve or damage a system that already functions well.