The range of strategic choice in Tanzanian industry

This paper reports the results of a strategic planning exercise carried out in Tanzania and shows that under actual planning conditions there can be a wide range of potential outcomes for decision-makers to consider. With a given output mix and the same level of investment over twenty years, employment creation could be 35 percent higher than the most capital-intensive alternatives would allow and incremental value added could be 5 percent higher. If different output mixes are introduced and a basic, heavy-industry strategy compared with one based strictly on economic efficiency, the most labor-intensive outcome would create 70 percent more jobs than the most capital intensive and produce 12 percent more incremental value added. A basic industry strategy can substantially reduce reliance on international trade, lowering the share of industrial value added due to trade-dependent industries from 47 percent to 11 percent, but may be more difficult to implement.     

The Effect of Alternative Judicial Systems and Settlement on Auditing

The accounting profession claims that the substantial litigation costs incurred to defend against negligence claims are used by plaintiffs to coerce settlement. We examine a model of auditing and settlement under the U.S. and British systems of allocating litigation costs between a plaintiff and defendant and compare the level of equilibrium auditing and audit pricing across the two regimes.If the unit cost of auditing is sufficiently high, then the system in the U.K. induces more auditing than does the U.S. system. Second, for some parameters, the system in the U.K. achieves this result while inducing lower audit prices.