Effects of taxation for option writers: an Australian perspective

Writing an option is a taxable event for Australian investors. This method of taxation penalizes investors who hold open short option positions over the tax year end by accelerating their tax liability relative to the timing of the economic gain from writing options. This paper examines the levels of open interest in the Australian Stock Exchange over the change in financial year to determine whether investors time their transactions to avoid this tax acceleration. The results show that level of open interest is lower in the last month of the financial year after controlling for non‐tax determinants of option demand.     

Why the Georgist Movement Has Not Succeeded:

A BSTRACT . The article surveys factors external and internal to the Georgist movement that account for its relative lack of success. Key factors are the identification of income with productivity and the belief in a right to privatize economic rent. The Georgist defense of productive property thus was seen as an attack on property.     

The causes of free bank failures: A detailed examination

In this paper we propose and test a new explanation of bank behavior during the Free Banking Era, 1837–1863. Arguing against the conventional view that free bank failures were due to wildcat banking, we claim they were caused by falling asset prices. Confronting both explanations with our new and detailed data set developed from state auditor reports, we find that the falling asset price explanation of free bank failures explains far more failures than does the wildcatting hypothesis.     

Information and computation in simultaneous equations estimation

The complexity and size of simultaneous equations systems necessitates great care with computations for parameter estimation. In three-stage least-squares (3SLS) large matrix inversions are required, and because of the sensitivity of many economic systems to key parameters, accuracy in estimation is important. There are many numerical techniques available which yield accurate solutions to systems of equations. We make use of Householder transformations and recursive triangulation solutions in presenting numerical algorithms for the computation of 3SLS and k-class estimates. Another numerical technique, the singular value decomposition is valuable in providing additional information in k-class estimation. The values of k for which this estimator does not exist are accurately derived, their use being demonstrated by an example.     

Information needs in US telephone industry regulation: A systems approach

After an initial discussion of current regulatory data problems in the common carrier telecommunications industry, the author proposes an alternative to the traditional regulatory process of the Federal Communications Commission. This proposal is essentially that the traditional control mechanism of rate-level regulation can be made more effective if, in addition, a comprehensive system of continuing industry surveillance is implemented.