Investment behavior and the biased perception of limited loss deduction in income taxation

We use a laboratory experiment to study the extent to which investors’ choices are affected by limited loss deduction in income taxation. We first compare investment behavior in the no tax baseline to a tax control setting, in which the income from investments is taxed. We find that investors significantly reduce their risk-taking as predicted by theory. Next we compare the baseline investment choices to choices under three different types of income taxation. We observe that risk-taking is significantly increased with partial and with capped loss deduction, but is unaffected by a tax system that allows no loss deduction. Since in all these treatments the after tax outcomes of the prospects were identical, we conjecture that investors have a positively biased perception of partial and capped loss deduction that promotes their willingness to take risks.     

Anarchy, efficiency, and redistribution

This paper develops a contractarian theory of the state and the existence of redistribution. The existence of rules of redistribution is explained without any recourse to the risk-aversion of agents. No veil of ignorance is needed. This avoids obligational problems inherent in most other contractarian theories of justice. Hence, this paper departs from the standard legitimization of redistribution as fundamental insurance and interprets it as stemming from a principle of reciprocity in trade. Since this paper deals with an anarchic society, the implementation of redistributional rules is constrained by the assumption of self-enforcement. We show that this assumption changes the interpretation of the state: the state is characterized by a particular design of equilibrium strategies, not by the existence of enforcement agencies.     

DISAGGREGATING FIRMS IN ANALYSING THE COSTS AND BENEFITS OF THE UNIVERSITY–INDUSTRY RELATIONSHIP: BASED ON AN ANALYTICAL AND EMPIRICAL STUDY FROM SCOTLAND

It has been acknowledged that universities are key institutions in national and regional systems of innovation. This recognition has led to a rich stream of literature analysing the university–industry relationship. However, relatively little attention has been devoted to disaggregating the ‘industry’ side of this relationship and examining the costs and benefits to the disaggregated parties involved. In the present article, which draws on an analytical and empirical study from Scotland, it is suggested that it makes sense to distinguish between three kinds of firms in analysing the university–industry relationship: large national and international R&D-intensive firms, university spin-out firms, and established small- and medium-sized enterprises (SMEs) that have had little interaction with universities. The different costs and benefits facing these firms in their interactions with universities are analysed. It is concluded that the established SMEs confront relatively high costs in relating to universities. Finally, the policy implications are explored.     

The impact of new goods and service products on firm growth: evidence from Austrian-linked firm-level data

Using a matched innovation survey and structural business statistics, we investigate the impact of the introduction of new service products and other types of technological innovations on firm growth measured as subsequent two-year employment growth. Results, based on median and robust regression methods for manufacturing firms, show that, on average, both the introduction of new goods and process innovations have a significant and positive impact on subsequent firm growth. In contrast, the introduction of new services does not, on average, have a significant impact on firm growth for both manufacturing and service firms. However, quantile regressions show that the introduction of new service products has a significant and positive impact on firm growth for high-growth service firms. Finally, in manufacturing, the introduction of product innovations has a positive impact on firm growth at both the lower and higher ends of distribution (i.e. for both high-growth and shrinking firms).     

Analysing The Evolution Of Industry: The Relevance Of The Telecommunications Industry

This paper analyses the fundamental forces involved in the evolution of the telecommunications industry. It is suggested that there are five major forces that together drive the evolution of this industry: specialisation, competition, financial markets. endogenous consumer demand and permeable industry boundaries. An important research task is to further elaborate on the boundaries of not only the industry but of the industrial system taken as a whole.     

Learning Objectives and Testing: An Analysis of Six Principles of Economics Textbooks,Using Bloom's Taxonomy

This study applies Bloom's Taxonomy of Educational Objectives to six principles of economics textboks and the accompanying instructor's manuals to determine whether the test banks provided are likely to measure the textbooks' stated objectives. The study finds significant discrepancies between the stated objectives of most textbooks and the instruments included in the instructor's manuals to measure student achievement.     

Economic Education in Japan at the University Level

The author describes from personal experience and observation economic education in Japan at the university level. As is true almost universally, Japanese students pursue higher education with different motives and aspirations and have a variety of institutions from which to choose. What they obtain in return depends upon the faculty with which they study and their own perseverance.     

An empirical investigation of interregional production relations and comparative advantage in US manufacturing, 1960–70

Hypothesized differences in mean changes in shares of European Community (EC) import markets over the period 1976-84 are tested for each of 36 less-developed countries. Means are calculated for cases in which MFN tariffs are re-established and for cases in which duty-free treatment is restored under the EC generalized system of preferences. They are compared with means for cases in which tariffs remained constant. We attempt to control for both product-specific and cyclical influences on imports. In contrast to some previous results, our findings suggest that denial (restoration) of preferential treatment, i.e. a tariff increase (decrease), has its expected negative (positive) effect.