Corporate Restructuring in the UK during the Recession

This paper reports the results of a large scale survey of how UK firms are coping with the recession. Only a relatively small number of firms report being "extremely severely" affected by the recession, and these were firms with highly dispersed ownership structures, firms that grew unusually fast in the mid to late 1980s and holding companies. Among the responses to the recession identified by the survey was a substantial degree of organizational choice, effected mainly by closing plants. The most stable organizational form seemed to be the functional organization, while holding companies were the least.     

Changes in Wage-setting Arrangements and Trade Union Presence in the 1980s

In this paper we detail the results of a retrospective survey of changes in trade union and wage-setting arrangements in the 1980s for a sample of 558 UK companies. Our key findings are as follows. (1) Complete derecognition of unions in a firm was rare even in firms with low trade union density. (2) Partial derecognition in multi-plant firms was more common. Some 13 per cent of companies with recognized unions in 1984 had had at least partial derecognition by 1990. (3) Large falls in trade union density within a firm have also been rare, though small but observable declines have been commonplace. (4) The coverage of the closed shop has substantially declined, and this decline has been most marked in the last five years. Around one-quarter of firms with recognized unions in 1990, however, still had closed-shop arrangement for at least part of their work-force. (5) There has been no clear decline in the prevalence of multi-unionism or multiple bargaining units. (6) There has been a significant move away from national/industry-wide bargaining, towards negotiations at the individual company or more often the establishment level. (7) In the absence of collective bargaining there have been clear moves away from wage-setting by formal external links, such as wages councils and multi-employer agreements, and even away from worker consultation towards more managerial discretion. (8) In deciding wage settlements, managers are increasingly influenced by company performance and less by multi-employer wage settlements.     

Shareholder rights and share capital: the effect of the 1901 Russian Corporation Reform, 1890–1905

During the nineteenth and early twentieth centuries, western European countries introduced general incorporation and additional flexible enterprise forms, but the Russian Empire left its concession system of incorporation in place. The Empire's only major corporation reform, the 1901 law, strengthened minority shareholder rights and removed bankers from boards of directors for certain corporations. The reform offers a rare opportunity to examine the financial effects of improving corporations’ principal–agent relationships through regulation, because the reform did not affect all corporations equally. Corporations affected by the reform had smaller total share capital, fewer shares, and higher par values for shares as observed in 1905. The new regulations may have increased the cost of having shareholders and hence disciplined corporations’ founders to be more conservative in raising capital by issuing stock. Removing bankers from boards of directors may have removed an important source of firms’ founding capital, though corporations could easily evade this provision. The results also show that, although the commercial code treated all corporations equally, there were two major groups of Russian corporations that behaved differently, and, despite the fact that corporate charters could grant individual exceptions to the commercial code, a revision in the commercial code changed corporations’ behaviour.     

DEUS CARITAS EST: THE SOCIAL MESSAGE OF POPE BENEDICT XVI

The first encyclical letter of Pope Benedict XVI contains many surprises, not least among which are observations about the nature of justice, the limits of the state, and the purpose and character of charitable organisations. This article analyses the encyclical by highlighting some of its underlying theological and philosophical influences as well as its practical implications for how Christians think about approaching poverty and the political order.     

Ultrafiltration versus diuretics for the treatment of fluid overload in patients with heart failure: a hospital cost analysis

Abstract

Background: Heart failure (HF) is a common, serious disease in the US and Europe. Patients with HF often require treatment for fluid overload, resulting in costly inpatient visits; however, limited evidence exists on the costs of alternative treatments. This study performed a cost-analysis of ultrafiltration (UF) vs diuretic therapy (DIUR-T) for patients with HF from the hospital perspective.

Methods: The model used clinical data from the literature and hospital data from the Healthcare Cost and Utilization Project to follow a decision-analytic framework reflecting treatment decisions, probabilistic outcomes, and associated costs for treating patients with HF and hypervolemia with veno-venous UF or intravenous DIUR-T. A 90-day timeframe was considered to account for hospital readmissions beyond 30?days. Sensitivity and scenario analyses were performed to gauge the robustness of the results.

Results: Although initial hospitalization costs were higher, fluid removal by UF reduced hospital readmission days, leading to cost savings of $3,975 (14.4%) at the 90-day follow-up (UF costs, $23,633; DIUR-T costs, $27,608).

Conclusions: UF is a viable alternative to DIUR-T when treating fluid overload in HF patients because it reduces hospital readmission rates and durations, which substantially lowers costs over a 90-day period compared to DIUR-T.     

Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain

It is widely recognized that, on average, children from poorerbackgrounds have worse educational outcomes than their better-offpeers. There is less evidence on how this relationship has changedover time and, indeed, what exactly leads to these inequalities.In this paper we demonstrate that the correlation between familybackground (as measured by family income) and educational attainmenthas been rising between children born in the late 1950s andthose born two decades later. We then consider the extent towhich these associations are due to the causal effects of incomerather than the result of other dimensions of family background.We review the approaches taken to answering this question, drawingmainly on the US literature, and then present our own evidencefrom the UK, discussing the plausible range for the true impactof income on education. Our results indicate that income hasa causal relationship with educational attainment.     

When producer surplus underestimates rents

This paper demonstrates for the long run that producer surplus exactly equals the sum of rents paid to competitively purchased inputs and fails to account for rents paid to monopsonized inputs. Therefore, in the long run, whenever one or more inputs are subject to monopsony buying power, producer surplus underestimates rents. Because the concept of producer surplus is often used to help compare the welfare effects of alternative economic policies, the result is significant.