Rare Earths in the Trade Dispute Between the US and China: A Déjà Vu

Intereconomics - The trade dispute between the US and China has reached a point where export restrictions on rare earths have become a possible means for sanction. This contribution provides a...     

ON VALUING STOCHASTIC PERPETUITIES USING NEW LONG HORIZON STOCK PRICE MODELS DISTINGUISHING BOOMS,BUSTS, AND BALANCED MARKETS

For longer horizons, assuming no dividend distributions, models for discounted stock prices in balanced markets are formulated as conditional expectations of nontrivial terminal random variables defined at infinity. Observing that extant models fail to have this property, new models are proposed. The new concept of a balanced market proposed here permits a distinction between such markets and unduly optimistic or pessimistic ones. A tractable example is developed and termed the discounted variance gamma model. Calibrations to market data provide empirical support. Additionally, procedures are presented for the valuation of path dependent stochastic perpetuities. Evidence is provided for long dated equity linked claims paying coupon for time spent by equity above a lower barrier, being underpriced by extant models relative to the new discounted ones. Given the popularity of such claims, the resulting mispricing could possibly take some corrections. Furthermore for these new discounted models, implied volatility curves do not flatten out at the larger maturities.     

Performance evaluation of National Football League teams

Most recent empirical analyses of production in the sports economic literature have focused on Major League Baseball. This paper extends that literature by analysing football production in the National Football League (NFL). Using the Poisson regression model, we measure the performance of NFL teams and head coaches. The measure is based on a production process where player skills are converted into games won. The evidence reveals that quality coaching is an important component in the production process. It appears that efficient coaching can account for an additional three to four victories in a given season. Copyright © 2000 John Wiley & Sons, Ltd.     

Adam Smith and the ethics of contemporary capitalism

This paper presents a theoretical elaboration of the ethical framework of classical capitalism as formulated by Adam Smith in reaction to the dominant mercantilism of his day. It is seen that Smith's project was profoundly ethical and designed to emancipate the consumer from a producer and state dominated economy. Over time, however, the various dysfunctions of a capitalist economy — e.g., concentration of wealth, market power — became manifest and the utilitarian ethical basis of the system eroded. Contemporary capitalism, dominated as it is by large corporations, entrenched political interests and persistent social pathologies, bears little resemblance to the system which Smith envisioned would serve the common man. Most critiques of capitalism are launched from a Marxian-based perspective. We find, however, that by illustrating the wide gap between the reality of contemporary capitalism and the model of amoral political economy developed by Smith, the father of capitalism proves to be the most trenchant critic of the current order.G. R. Bassiry is currently professor of Management and international business at California State University, San Bernardino, California. Formerly he served as Vice President and Acting President of Farabi University. His most recent articles on business ethics include Ethics, Education, and Corporate Leadership,Journal of Business Ethics and Business Ethics and the United Nations: A Code of Conduct,Sam Advanced Management Journal. He has also published numerous journal articles on international business, corporate strategy and corporate leadership, and is the author ofPower vs. Profit by Arno Press of New York Times.Marc Jones is a management lecturer at the University of Otago, New Zealand. His research interests include multinational corporations and economic development. He has worked as a financial analyst for Electronic Data Systems Corporation and as a management consultant for Peat Marwick Main & Company.     

Consumers’ Perceptions of Corporate Social Responsibility: Scale Development and Validation

Researchers and companies are paying increasing attention to corporate social responsibility (CSR) programs and the reaction to them by consumers. Despite such corporate efforts and an expanding literature exploring consumers’ response to CSR, it remains unclear how consumers perceive CSR and which “Gestalt” consumers have in mind when considering CSR. Academics and managers lack a tool for measuring consumers’ perceptions of CSR (CPCSR). This research explores CPCSR and develops a measurement model. Based on qualitative data from interviews with managers and consumers, the authors develop a conceptualization of CPCSR. Subsequently, model testing and validating occurs on three large quantitative data sets. The conceptualization and the measurement scale can assist companies to assess CPCSR relative to their performance. They also enable managers in identifying shortcomings in CSR engagement and/or communication. Finally, the paper discusses implications for marketing practice and future research.