The new right and the US economy in the 1980s: an assessment of the economic record of the Reagan administration

This paper discusses the new-right ideas underlying the victory and implementation of ‘Reaganomics’ and examines the economic record of the Reagan administration. Given the preeminence of supply-side economics in the USA in the 1980s, and the supply-side leanings of the Reagan government, attention is focused mainly upon supply-side ideas, policies and claims: although some assessment of monetarist propositions is also provided. In addition to the evaluation of new-right claims, however, a broader assessment of the Reagan administration's record is also undertaken which deals, inter alia, with inflation, growth, unemployment and the ‘twin deficits’. Within this evaluation the social impact of Reaganomics is highlighted as a counterpoint to the claimed economic successes of the Reagan years.     

Pattern Bargaining*

Many unions in the United States have for several years engaged in what is known as pattern bargaining. In this article, we show that pattern bargaining is preferred by a union to both simultaneous industry‐wide negotiations and sequential negotiations without a pattern. Allowing for interfirm productivity differentials within an industry, we show that for small differentials, the union most prefers a pattern in wages, but for a sufficiently wide differential, the union prefers a pattern in labor costs. Finally, we demonstrate that pattern bargaining can be a significant entry deterrent. This provides an explanation for why incumbent firms in an industry may support the use of pattern bargaining in labor negotiations.     

The use of microcomputers in accounting education

Developments in the microcomputer industry promise to revolutionize American business. Recent projections show 1983 retail sales to be almost 8 billion dollars.Four years ago Brigham Young University began using microcomputers to assist in accounting education. This article explains how the micro is used in a variety of undergraduate and graduate classes and for administrative purposes.The micro is a very powerful tool that has many future uses in accounting education. Examples include: accounting and data base packages and as an auditing or research tool.The use of the micro, however, is not without problems. For example: funding, training, student assistance, and quality teaching materials.Accounting educators must train their students in the use of the microcomputer since failure to do so would result in their missing one of the most significant trends in American business.     

Scale and scope economies in the multi-product banking firm

The multi-product nature of the banking firm is examined utilizing the translog cost function. This analysis indicates that, contrary to conventional wisdom, natural monopoly, scale economies and product-specific decreasing costs are not robust characterizations of the banking industry. There is, however, evidence that the cost function is characterized by economies of scope. The implications of these results are discussed and extensions of this approach suggested.     

Accounting for Convertible Loan Stock: A Decomposition Approach

This paper examines the accounting treatment of convertible loan stock (CLS), a popular vehicle for raising finance during the past decade. At present, CLS is treated as part of a company's borrowing with the interest charge thereon deducted in arriving at the pre-tax profit in the profit and loss account. The Technical Committee of the Institute of Chartered Accountants in England and Wales (1987) has proposed that the annual interest charge in the profit and loss account relating to CLS be adjusted so that the charge reflects ‘a fair interest cost’ and that the adjustment be treated in the balance sheet as a ‘payment received for an option’. To date that guidance appears to have been ignored by UK companies. Our approach is different from that of the Technical Committee. We recommend that the accounting treatment of CLS should reflect its economic substance and argue that it be decomposed into two components: a straight bond component and a component which offers the holder an option to convert into equity. The straight bond component should be shown as part of a company's borrowing and the conversion option component as part of the shareholders' funds. The different approaches to accounting for CLS are illustrated by means of a case study.     

Black Liberation and the Foundations of Social Control

In regards to funding for the civil rights and black power movements in the United States, the major philanthropic foundations pursued their primary goals of social engineering and implementation of reforms designed to establish and maintain social control. They operated in the ultimate interests of the wealthy corporate and financial interests that dominated foundation boards and founders, promoting incremental reforms in order to secure their own long‐term systemic interests.     

Relational Domain Switching: Interpersonal Insecurity Predicts the Strength and Number of Marketplace Relationships

In this paper, the authors test a compensation model of interpersonal and marketplace relationships. Guided by an attachment theory perspective, the authors argue that reflecting on or experiencing insecure interpersonal relationships can induce consumers to seek surrogate relationship partners in the marketplace. This general prediction is supported by results from an experiment and two surveys. Specifically, results show that interpersonally anxious consumers report more and stronger brand relationships. Furthermore, interpersonally avoidant consumers report more and stronger brand relationships, as well as more numerous but weaker service relationships. These studies support the prediction that people employ marketplace solutions to offset deficiencies in their personal relationships. The paper concludes by contextualizing the results within research on loneliness and materialism.     

Mobility of women into the economic mainstream

Being a woman hinders advancement in the labor market, an inequity which perpetuates the conconcentration of women in low-paid jobs. Analysis of 1970 United States Census data reveals that women in low-paid occupations have a much lower probability of upward mobility than men. Low-paid service jobs, which are typical for women, provide less opportunity than other jobs. However, even after adjusting for differences in occupation and industry, as well as controlling for age and schooling, women are far less likely than men to experience upward mobility.     

Determinants of the Rate of Return for Nonresidential Real Estate: Inflation Expectations and Market Adjustment Lags

This paper analyzes the economic forces that determine the real rate of return for nonresidential real estate. Our analysis shows that the intermarket variation in the real rate of return is statistically significant, and the rate of return differs by land use and market area, as well as over time in response to changes in macro-economic conditions. We use inflation variables as surrogates for changes in macroeconomic conditions over time. In contrast to earlier studies, we find that nonresidential real estate may not outperform expected inflation. We believe that the impact of expected inflation (and other macroeconomic variables) on real estate rates of return depends upon the interaction of the macro-environment and specific local real estate market conditions. Finally, our empirical evidence suggests that the effects of a given shock dissipate rather quickly in most markets when we take into account locational and property use differences.