A uniqueness proof for monetary steady state

The framework in Lagos and Wright (2005) [20] combining decentralized and centralized markets is used extensively in monetary economics. Much is known about that model, but there is a loose end: only under special assumptions about bargaining power or decentralized market preferences has it been shown that the monetary steady state is unique. For general decentralized market utility and bargaining, I prove uniqueness for generic parameters with fiat money, and for all parameters with commodity money. As a corollary, I get monotone comparative statics.     

Exploring subcultural differences in hofstede's value survey: The case of the Chinese

Hofstede's Value Survey Module (VSM) identifies fundamental differences in the way people in various countries perceive and interpret their worlds. After adjusting value scores on the basis of demographic features of samples in the present study, values between subcultural groupings in four Chinese-populated regions (Taiwan, Beijing, Hong Kong, and Wuhan) were compared, and strong subcultural differences revealed. A methodology is proposed to facilitate VSM comparisons using limited, secondary data sources. Propositions concerning subcultural differences are suggested on the basis of the findings.     

Education and wages in the Czech and Slovak Republics during transition

An employer-based sample of over 400,000 Czech and 125,000 Slovak men is used to estimate the benefits of education in 1995–1997. By 1997, education of all types had become substantially more highly rewarded in both countries than it was either under communism or in the early years of the transition. Education's value began increasing earlier and reached a higher level in the Czech Republic than in Slovakia. Increases in the value of education were especially pronounced for types of education ideologically disfavored by communism.     

THE ASSOCIATION BETWEEN EXECUTIVE SUCCESSION AND DISCRETIONARY ACCOUNTING CHANGES: EARNINGS MANAGEMENT OR DIFFERENT PERSPECTIVES?

This paper investigates the association of executive changes with both income increasing and decreasing accounting changes. Two potential explanations for the hypothesis that firms with changes in CEOs are more likely to make accounting changes are examined. The earnings management explanation holds that new management intervenes in the financial reporting process in order to alter perceptions of effectiveness. The different perspectives explanation holds that managements have different tastes, perspectives, or views of the world than the predecessor. Evidence supports the different perspectives explanation.     

The role of federal funding on the demand for state and local government spending

Federal aid to state and local governments lowers the perceived tax price of state and local government output and, in this way, affects the demand for state and local government. After reviewing some theoretical models, an empirical investigation using data from 1960–89 shows that federal aid makes the demand for state and local government spending more income-elastic. State and local government expenditures have grown more rapidly than federal government expenditures since 1960 and there is some empirical support for the idea that federal aid was an important contributing factor.     

Social networks,rule of law and economic growth in China: The elusive pursuit of the right combination of private and public ordering

Social networks have always been an integral part of every society. However, they are different and play a more prominent role in Asian societies. In particular, it will be argued that the relationship of private ordering, networks of relationships, and informal law to formal law are necessary in addition to rule of law for a sustained economic growth. This is evident in how various Asian countries escaped the financial crisis that crippled the region. Rather than an analysis of several different Asian societies, China will be the main focus.     

Dynamic capabilities in entrepreneurial firms: A case study approach

Three entrepreneurial case studies in Canada show that changes in the environment??such as changes in customers?? needs and changes in competitive products??are the major sources of opportunities. To recognize and exploit these opportunities, the firm needs entrepreneurial capabilities. At the same time, to gain long-run competitive advantage, the firm needs dynamic capabilities. The case findings show that entrepreneurial capabilities have circular and iterative relationship with dynamic capabilities??each reinforces the other. The more often the iteration takes place, the stronger entrepreneurial capabilities and dynamic capabilities are. Further, the study builds on the extant literature and develops a new method to capture dynamic capabilities through capturing changes in ordinary capabilities.     

Demand Curves for Stocks Do Slope Down: New Evidence from an Index Weights Adjustment

Weights in the Toronto Stock Exchange 300 index are determined by the market values of the included stocks' public floats. In November 1996, the exchange implemented a previously announced revision of its definition of the public float. This revision, which increased the floats and the index weights of 31 stocks, conveyed no information and had no effect on the legal duties of shareholders. Affected stocks experienced statistically significant excess returns of 2.3 percent during the event week, and no price reversal occurred as trading volume returned to normal levels. These findings support downward sloping demand curves for stocks.