Is it U.S. GAAP or IFRS? Understanding how R&D costs affect ratio analysis

While financial reporting standards under U.S. GAAP and IFRS are fundamentally similar, differences do exist that may affect our analysis of company financial statements. This is particularly true when comparing a U.S. company following U.S. GAAP to a firm that uses IFRS. To illustrate, we compare research and development (R&D) accounting methods under both sets of standards and illustrate how they affect the analysis of financial results of firms in a specific industry—automotive manufacturers. Our results provide insight into settings in which differences in R&D accounting may have the greatest impact on financial analysis.     

Impact of state-dependent oil price on US stock returns using local projections

In this paper, we investigate the impact of oil prices on both aggregate and industry US real stock returns over the period 1973–2017. The empirical analysis contributes to the related literature introducing a state-dependent oil price (high and low) and the local projections approach. Our main finding is that, depending on the nature of the shock and industry, the negative effects of oil price shocks become exacerbated -and the positive effects get moderated- if oil prices are already high.     

Does corruption slow down innovation? Evidence from a cointegrated panel of U.S. states

I investigate the long-run relationship between corruption and innovative activity using annual data from 48 contiguous U.S. states between 1977 and 2006. Using U.S. data allows me to work with a panel long enough to exploit time series properties of the data. I use two different measures of innovative activity: one measuring the quantity and the other measuring the quality of the patents granted. I also use two different measures of corruption: one based on the number of corruption convictions, the other based on number of corruption stories covered in Associated Press news wires. Following Pedroni (1999, 2000), I estimate the cointegrating relationship between corruption and innovative activity with Fully Modified Ordinary Least Squares (FMOLS). The results indicate that corruption indeed slows down innovation in the long-run.     

Economic Impacts of the Possible China–US Trade War

This article uses a multi-country global general equilibrium (GE) model to numerically simulate the effects of possible China–US trade wars. We introduce an endogenous trade imbalance structure with trade cost into the model which helps to explore both tariff and non-tariff trade war effects. Our simulation results show that China will be significantly hurt by the China–US trade war, but negative impacts are affordable. The US can gain under unilateral sanction measures to China, but will lose if China takes retaliation measures. Comparing the effects under mutual trade war, China will lose more than the US. Introducing non-tariff barrier trade wars will intensify the negative effects, and comparatively negative effects to China are larger than to the US. Mexico’s involvement in trade war with the US will strengthen the negative effects and comparatively hurt the US more. Under non-cooperative and cooperative Nash bargaining equilibrium, the US can gain more than China in trade war negotiation, which means the US has stronger bargaining power than China. Additionally, trade wars between China and the US will hurt most countries and the world especially in GDP and manufacturing employment, but benefit their welfare and trade.     

Family and sex-specific U.S. immigration from Europe, 1870–1910: A panel data study of rates and composition

This paper develops and estimates models of family and sex-specific emigration, as well as the sex composition of this emigration, from 12 European source countries to the U.S. for the period 1870–1910. The models are based on the distinction between economic migrants (males, single females, and some married females) and tied or trailing migrants (females) and are estimated with panel data, including data that relate to the occupational/industrial structure of male and female economic activity in source countries. Hausman-Taylor instrumental variable estimates suggest that although both males and females responded to labor-market signals, males were more responsive than females to per capita GDP differences. Moreover, compared to the rest of Europe, Ireland, and Scandinavia were the sources of many young, single male, and female migrants, who responded strongly to gaps in economic opportunities. In fact, much of the European response to such gaps appears to be due to migrants from Ireland and Scandinavia. Females tended to originate in English-speaking countries and countries that were agriculturally oriented. Service and manufacturing jobs in source countries discouraged the migration of females relative to males. Males tended to follow recent migrants more than females, but females responded more to long-term influences as measured by stocks of migrants from their source countries who had previously settled in the U.S. Countries with high birth rates had relatively fewer female emigrants, whereas those with high rates of natural increase 20 years earlier experienced relatively more male emigration. Intact families, other family members (including family-strategy male migrants and trailing female migrants), and single males and females responded strongly to economic incentives, but the singles were most responsive followed by family-strategy males.     

Independence and the State Auditor in Britain: A Constitutional Keystone or a Case of Reified Imagery?

The principles of state audit, in particular conceptions of independence, adhered to today in the major Westminster democracies originated in the British state audit reforms of the nineteenth century. State auditors prior to the nineteenth century were not expected to be independent of the executive. Instead, state audit was recognized as an executive function to be under the direct control of the executive. For a brief period in the mid-nineteenth century, parliament was able to take advantage of a succession of weak governments to redirect the loyalties of state audit from the executive to the legislature. Although parliament wanted to be served by a state auditor who would keep it informed of executive spending, it did not alter the dominance of the Treasury over state audit. The executive sought to sustain through a discourse of independence the perception that the controls exercised by the executive over the state auditor did not constitute either a threat to audit independence or result in capture of state audit by the executive. The discourse constructed the image of state audit as a function which was able to work unimpeded and independent of the executive despite a legislative framework which contained significant financial, procedural and staffing controls.     

The Nested PIGLOG Model: An Application to U.S. Food Demand

A new demand system is introduced, the Nested PIGLOG model, nesting thirteen other demand systems including five that are also new. This new model and its nested special cases are applied to models of U.S. food demand that include food-at-home (FAH), food-away-from-home (FAFH), and alcoholic beverages. Although nested tests and out-of-sample forecasting performance favor generalizing models to a certain degree, statistically insignificant improvements to in-sample-fit and even poorer out-of-sample forecast accuracy undermine further generalizations. Based on a subset of preferred models, FAFH is found to be price and income elastic compared to FAH which is price and income inelastic.     

Business communities in the European confectionery sector: A U.K.-Finland comparison

This paper is based on the early stages of an international collaborative project investigating the structural changes of the confectionery sectors in Finland and the U.K. over the past two decades. An institutional perspective is used to extend conventional understandings of industries via the development of the sector concept. The network and community constructs are shown to be important devices for understanding the institutional character of a sector. Accordingly, the paper reveals the similarities and differences between the two national examples. An explanation is offered of the way domestic networks persist in both countries while contrasting community profiles are apparent.     

浅析和谐社会中的政府行政伦理建设——美国经验的启示

党中央提出构建社会主义和谐社会．而政府保持清正廉洁是构建和谐社会的重要因素。美国政府已经基本形成一个相对完整的政府行政伦理体系，而其体系的建设则经过了上百年的历程，是由他律转变为自律的过程。美国政府道德规范体系的构建经验对我国有一定的借鉴意义。     

从人力资本投资看我国的城乡收入差距

本文从人力资本投资的角度探讨影响城乡收入差距的因素,通过1990年和2000年的省际截面数据分析,得出的基本结论是:基础教育的普及程度比较高,在城乡之间的普及没有太大的差距,因此不是形成城乡收入差距的原因;而高等教育的人力资本投资的增加在1990年会降低城乡收入差距;2000年二者的关系为"U"型关系,即开始阶段规模的扩大会降低城乡收入差距,随着高等教育规模的不合理和无序扩大,反而会引起城乡收入差距的扩大。