“Post‐Truth,” “Alternative Facts” and “Fakenomics”

South African companies are accused of hoarding profits to accumulate large amounts of “idle” cash, as well as of being the perpetrators of massive illegal capital flight. This paper argues that much of the claimed corporate cash is either offshore or belongs to banks. It reminds that bank deposits increase when companies borrow, not when they retain profits. It shows, too, that measures of massive capital flight actually reflect data errors. Exaggerating, through faulty methodology the extent to which companies have cash or may be involved in illegal capital flight is unhelpful. It exacerbates already‐fraught government‐business relations, and complicates the search for solutions to South Africa's economic problems.     

“Creating jobs — meeting needs”

Centre for Local Economic Strategies, 1988: Meeting Real Needs — Creating Real Jobs. Research Study Series No. 1, Alberton House, St. Mary's Parsonage, Manchester M3 2WJ.£10.00.     

THE NATURE OF THE “THREAT OF CHINA”—A Japanese View—

A China with nuclear capabilities is one of the big problems in international politics in East Asia. Some of the politicians in Japan feel the threat, and are trying to cope with it by closer ties with the United States. The “threat,” however, must be analyzed from the aspects of both China's capabilities and her intentions. By analyzing China's past behavior, the writer deduces that China's main objective seems to be the “liberation of Taiwan,” and not mere expansionism or simple security. On the basis of this understanding, the writer concludes that the “threat” comes from the Sino-American confrontation over Taiwan and from ideological or psychological warfare. It is concluded, therefore, that closer ties with the U. S. is not good for the peace and security of Asia. Better communications, the solution of the Taiwan problem and better domestic policies, it is suggested, are essential for this purpose.     

Discussion of “The Psychology of Billing”

Hansen, Jackson, Schaefer, and Stewart (2018) examine the effects of three contextual features on tax professionals’ billing decisions in a case involving issue‐specific tax research. In this discussion, we present a tax fee model. In contrast to determining a bill, our model views tax fees in a more comprehensive perspective. We subsequently use this model to discuss the design choices and limitations of their study and to provide suggestions for future research.     

Discussion of “Accounting Recognition,Moral Hazard,and Communication”

This paper addresses two issues within an agency setting. First, it identifies conditions under which late recognition of an event is preferred to early recognition in the absence of communication of other private information. Second, it demonstrates that the agent's ability to voluntarily disclose his or her private information interacts with the preference for early versus late recognition. Of special interest is the case where early recognition is preferred to late when there is no other source of information, but late recognition is preferred in the presence of a secondary source. I have three types of comments on the paper. The first summarizes the important aspects of the model. The second involves the interpretation of the control problem as accounting recognition. The third contains suggestions regarding how one might bring a valuation perspective into the control setting.     

Discussion of “Information Asymmetries about Measurement Quality”

This article discusses Glover and Levine (2019). It summarizes Glover and Levine's model, its contributions, and practical implications. It also suggests empirical extensions based on the predictions of the model.     

Discussion of “Optimal Conservatism with Earnings Manipulation”

In this discussion, I briefly summarize the key features of Bertomeu, Darrough, and Xue's (hereafter BDX) model. I then examine the four key assumptions that BDX employ to arrive at their results: (i) firms contract only on earnings; (ii) conservative earnings are better for contracting; (iii) conservatism motivates upward earnings manipulation; and (iv) conservatism is endogenous. I then briefly conclude.     

“Regional questions”

Publications Reviewed:

Royal Town Planning Institute, 1986: Strategic Planning for Regional Potential. A discussion document.

Royal Institution of Chartered Surveyors, 1986: Regional Policy-A Fresh Approach.

Armstrong, H. and Taylor, J. 1987: Regional Policy: The Way Forward. The Employment Institute.

Northern Region Councils Association, 1986: The State of the Northern Region.

South East Economic Development Strategy (SEEDS), 1987: South-South Divide. An exposition of the SEEDS project.     

”Uneven development“

John Allen and Doreen Massey (eds), 1988: The Economy in Question. London: Sage Publications, £8.95 paper.

Doreen Massey and John Allen (eds), 1988: Uneven Re-Development: Cities and Regions in Transition. A Reader. London: Hodder and Stoughton, £7.50 paper.

Kevin Morgan and Andrew Sayer, 1988: Microcircuits of Capital: “Sunrise” Industry and Uneven Development Oxford: Polity Press. £35.00 cloth.