Land, Factor Markets, and Inequality in Rural China: Historical Evidence

Drawing on a unique household-level data set from northeast China in the 1930s, this paper explores the connections between the distribution of land, factor markets, and income distribution. We test whether patterns of income inequality were consistent with the predictions of a market-clearing, neoclassical model linking land and labor endowments, through factor markets to household income. While the model is consistent with some features in the data, we reject the hypothesis that factor markets worked perfectly and find support for the historian's intuition regarding the disproportionate impact of land inequality in the countryside. Nevertheless, where markets were more active, especially land rental markets, excess returns to land were diminished and inequality was lowest. This suggests that factor market development played a positive role in reducing inequality in rural China.     

Pricing and Indirect Cost Allocation — A Note

Companies that use cost-based pricing usually allocate indirect costs to their products. An inherent problem with this is that, while product prices are a function of the total cost, indirect cost allocation methods based on revenues depend on the product prices. This paper shows how to simultaneously determine unique product prices (with unequal markup rates) and cost allocations using the relative revenue method.     

A cost‐benefit analysis of R&D tax incentives

Abstract.  Although technical knowledge generates spillover benefits, production of technical knowledge creates congestion externalities; thus, private R&D investment could be inefficient. A computable general equilibrium model is used to rank tax incentives by their effects on research effort and measure welfare effects. Five results stand out: R&D tax credits produce relatively large increases in research effort and welfare. Lower corporate income tax rates and ITCs for downstream users of high‐tech production inputs rank second. Revenue losses from lower personal income tax rates can produce welfare losses. Ironically, ITCs for upstream producers of innovative inputs are ineffective. Incremental R&D credits dominate comprehensive credits. JEL Classification: E62, H21, O38     

Those who can,Do—Those who can’t...: Marketing professors and the Robinson-Patman act

In the academic world of marketing professors, we like to think we know everything that is “relevant” about marketing. Of course we do not, because the discipline is too broad and diverse for one to be thoroughly knowledgeable in all its aspects. This article examines the understanding of the ROBINSON-PATMAN ACT by university professors. This 1936 law is the most important marketing statute dealing with pricing activities. Marketing students must be exposed to this key legislation during their marketing classes. But do marketing professors understand the law well enough to teach it?     

National vs. corporate culture: Implications for human resource management

Corporate culture has been described as the “glue” that holds organizations together by providing cohesiveness and coherence among the parts. Multinational companies are increasingly interested in promoting corporate culture to improve control, coordination, and integration of their subsidiaries. Yet these subsidiaries are embedded in local national cultures wherein the underlying basic assumptions about people and the world may differ from that of the national and corporate culture of the multinational. These differences may hinder the acceptance and implementation of human resource practices, such as career planning, appraisal and compensation systems, and selection and socialization. This article discusses the assumptions about people and about the world underlying these HRM practices as they may differ from those of the national culture of the subsidiary. Finally, issues concerning the use of corporate culture as a mechanism for globalization will be raised.     

Deregulation,competition, and the network size in the market for telecommunication services

This paper analyzes the networking aspect in telecommunication services and the recent divestiture and increased competitiveness of the industry. The product considered is the right to access the network. The utility of a consumer from having access to a network depends on the network's quality, defined by the number of other local and long-distance consumers which can be reached. Network services are provided in two layers; On the lower layer consumers within a local access and transport area (LATA) are connected to a central office which provides the basic switching facility for local telecommunication. On the upper layer, LATAs are connected together by an interLATA carrier, to enable long distance communication from different localities.It is shown that relative to the choices of an unconstrained monopolist, larger networks at both layers may be obtained by imposing quality controls, while price controls may have the opposite effect. A divestiture policy in which all local carriers are connected to a single long distance carrier is likely to reduce the quality of services at both layers. Introducing competition among long-distance carriers further reduces the quality of long distances services but may improve the local service.