The competition for deposits and the impact of monetary policy

Financial intermediation in Britain can be said to have reached maturity before the war, since when the growth of banks has been critically a question of market share. Until the shift in monetary policy away from direct restriction of bank lending that began about nine years ago, credit restriction added to other factors, like taxation and the bank cartel, limiting the ability of the banks to compete. The author argues that an open-market policy directed toward money supply control need not discriminate against banks. However, the re-introduction of bank lending restrictions through the use of Special Deposits and, even more so, through the use of Supplementary Special Deposits has worked to favour non-bank deposit intermediaries. The distortions caused by the Supplementary Special Deposits not only discriminate against the banks; they are also likely to undermine the use of monetary policy itself. What are required are government policies, especially with regard to the size of the public sector borrowing requi rement, that make possible the goal of a non-discriminatory open-market policy, without the need for direct controls on lending by financial institutions.     

Matt Goldspan's trilogy

Matthew Goldspan was faced with a series of coincidental personnel issues that tested both his fairness and integrity. He had been a branch manager of a financial services operation for three years, where he oversaw thirty five employees. In one instance, a clerical employee protested salary differences she discovered; in another, his affirmative action record, as well as his right to make hiring decisions, was in question; and thirdly, he had to decide how to respond to theft by a temporary employee who happened to be the son of a prized member of his staff. In each case, employees were looking for Matt to demonstrate appropriate leadership and sound judgment.Jay Halfond is currently Associate Dean of the College of Business Administration at Northeastern University, where he also teaches graduate and undergraduate courses in social and ethical issues of management. He has published numerous articles, reviews, and cases on higher education administration and on ethical issues in management.     

Attributing technological bias to public goods

This note reports a modification of one use of the translog production function reported by Binswanger (1973, 1978). The method employed in this study recognizes that changes in factor shares over time are affected by a variety of decision variables including research and extension. In addition, some of the changes attributed to technical change may in fact be due to a change in the resource environment the individual decision maker faces, including the stock of public goods infrastructure. The study also investigates shifts in technological change which may be attributed to changes in the political climate.     

Intrametropolitan migration: A simultaneous model of employment and residential location of white and black households

This study explores the relationship between the home and job location of the household within a metropolitan area. The model is an extension of the Alonso-Muth framework and allows the household to simultaneously choose its residential and employment location, monthly rent, number of rooms and the type of structure of the dwelling unit, so as to maximize its utility subject to the budget constraint.The data base is the Home Interview Survey conducted in 1965 by the (San Francisco) Bay Area Transportation Study Commission. The coefficients in the simultaneous model are estimated by two-stage least squares. The cross-section sample is stratified by tenure into renters and homeowners; by race into black and white households; and further by position in the life-cycle.The results of the location equations reveal that both the home and job location are responsive to each other which implies that the decentralization of jobs will result in the decentralization of residences for black households. The results of the housing equations imply that black and white households have almost identical elasticity of demand for housing. There is very slight evidence of price discrimination against black households. However, there is evidence that black households do face a geographical segregated market for rental housing.The results of this study argue that the decentralization of population is not due solely to rising incomes and will continue as long as industry decentralizes. Furthermore, governmental policies of increasing the income of central city residents, through subsidies to employers to locate in the central city will have a strong effect: inducing those residents to remain in or move into the central city. Thus, a policy that is meant to alleviate the plight of the city center may only result in strengthening the racial and income split between the suburb and the central city inhabitants.