The Pricing of Best Efforts New Issues

This paper offers an explanation for the underpricing of best efforts new issues and demonstrates that best efforts contracts allow issuers to use information from the market. If investors obtain information which indicates that a project will not be profitable, their demand will be low and the offering will be withdrawn. If this information is costly, investors will have to be compensated for its purchase through a lower offering price, which means that issuers will have to underprice. This result is consistent with the empirical observation that underpricing is considerably greater for best efforts than for firm commitment contracts.     

STABILIZATION POLICY, LEARNING-BY-DOING, AND ECONOMIC GROWTH

This paper shows that fiscal policy, when used for stabilizationpurposes, can have a positive effect on the economy's growth,on human capital accumulation, and on welfare. We introducestochastic productivity shocks into a model in which productivityis augmented through learning-by-doing If future benefits oflearning-by-doing are not fully internalized by workers, thenrecessions are periods in which opportunities for acquiringexperience are foregone. We identify configurations of disturbancesand other parameters for which a countercyclical policy maximizesgrowth and welfare.     

ARE DISAGREEMENTS AMONG MALE AND FEMALE ECONOMISTS MARGINAL AT BEST?: A SURVEY OF AEA MEMBERS AND THEIR VIEWS ON ECONOMICS AND ECONOMIC POLICY

The authors survey economists in the United States holding membership in the American Economic Association (AEA) to determine if there are significant differences in views between male and female economists on important policy issues. Controlling for place of current employment (academic institution with graduate program, academic institution—undergraduate only, government, for‐profit institution) and decade of PhD, the authors find many areas in which economists agree. However, important differences exist in the views of male and female economists on issues including the minimum wage, views on labor standards, health insurance, and especially on explanations for the gender wage gap and issues of equal opportunity in the labor market and the economics profession itself. These results lend support to the notion that gender diversity in policy‐making circles may be an important aspect in broadening the menu of public policy choices. (JEL A11, J78, A14)     

Family Decision Making and Resource Protection Adequacy

This study examines the correlation between resource protection and the intrahousehold distribution of bargaining power. Using data from the Health and Retirement Study, the analysis quantifies potential changes in the surviving individual's living standard to evaluate the adequacy of resource protection. Individuals who generate a larger share of family income, are more financially knowledgeable, or have the “final say” in family decisions leverage their bargaining power to secure higher protection of their hypothetical widowhood living standard. Consequently, spouses with more bargaining power are less likely to experience declines of their living standard in the event of their spouse passing away and are more likely to be overprotected.     

Achieving High Quality, Comparable Financial Reporting: A Review of Independent Enforcement Bodies in Australia and the United Kingdom

This article provides a review of the activities of two quite different types of national enforcement body, the U.K.'s Financial Reporting Review Panel (FRRP) and the Australian Securities and Investments Commission (ASIC). We present material (some not available elsewhere) about their activities over the period 1998–2004 and show that both types of body can fulfil an enforcement role, albeit subject to political forces. We also assess the relevance of the bodies' past activities for comparable international enforcement following the adoption of International Financial Reporting Standards (IFRS) in 2005. A review of cases reveals that for both bodies approximately half were related to recognition and measurement issues, where interpretation can be crucial. Although there is potential for cross-country differences to arise, they may be mitigated by the participation of both bodies in international enforcement coordination activities. Past activities suggest that the scope of the bodies' activities and the extent of comparability of enforcement decisions are likely to reflect political views held within the government, corporate sector and accounting profession.     

Factors affecting the selection of clothes on daily basis: male and female differences

The major objective of the study was to test the theories of the function of dress that individuals apply to everyday practice. The study examined the extent to which Maslow's theory of motivation is relevant to male and female practice regarding the selection of daily clothes, the order of importance and the attention to clothing functions demonstrated by males and females, and the inter-relationship between the different clothing functions. The study is based on data collected from male and female students at a midwestern university in the month of April. The Friedman two-way ANOVA by ranks revealed that weather function was the single most important clothing function for males which influenced the selection of daily clothing, while social activity was the most important clothing function which influenced females. Females indicated a higher degree of consideration of each clothing function than males. These findings suggest that females tend to dress more for social reasons, are more sensitive to clothing needs and possess a greater degree of clothing awareness than males. The correlation coefficients of clothing function for males and females indicated that there was a high degree of correlation between several clothing functions. The correlation coefficients of clothing functions for females were more consistent than those for males, indicating that females consistently consider several clothing functions concurrently while males do not. This finding conforms with the theory of functions of dress which illustrates the multiple nature of motivation of clothing behaviour and the interdependent characteristics of Maslow's five basic human needs.     

WIFE'S EMPLOYMENT—ITS INFLUENCE ON MAJOR FAMILY EXPENDITURES

This study was undertaken to examine the influence of wife's employment on major family expenditures. Tobit analysis of data from the 1972–73 Consumer Expenditure Surveys found no relationship between wife's employment and outlays on twelve categories of expenditures. Family income had the greatest overall influence on the expenditure categories examined. Therefore, it appears that the absolute amount of income was more important than its sources in determining expenditures.     

Productivity Gains from the Implementation of Employee Training Programs

This study uses data on the personnel policies and economic characteristics of businesses in the manufacturing sector to measure the impact of formal training programs on labor productivity. The major finding is that businesses that were operating below their expected labor productivity levels in 1983 implemented new employee training programs after 1983 that resulted in significantly larger increases in labor productivity growth between 1983 and 1986. This higher rate of productivity growth was sufficient to bring these businesses up to the labor productivity levels of comparable businesses by 1986.