Core and value for a public-goods economy: An example

An example of a public-goods economy with a continuum of agents is presented in which the Shapley value does not lie in the core.     

Repressed inflation in the Soviet Union: A temporary equilibrium approach

The Soviet economy is modeled by means of temporary general equilibrium theory. Three temporary equilibrium states are distinguished. In Walrasian equilibrium, all markets clear. Under repressed inflation, there is excess consumer demand for goods marketed by the state, while consumer demand is deficient in the underconsumption regime. The dynamics of these temporary equilibrium states are studied and the dynamic adjustment equations fitted to Soviet data. Simulation of the model offers an explanation for the tendency of the inventories/cash balances ratio to fall since 1965.     

Shapley value and disadvantageous monopolies

At least one monopoly in a two-sector model must be advantageous, according to the Shapley value. If the elasticity of substitution is a constant at least equal to one, then each monopoly has an advantage if the other sector is not monopolized. For elasticity of substitution less than one, monopoly may be disadvantageous, depending on the distribution parameter.     

The ethical mind. A conversation with psychologist Howard Gardner

Business leadership has become synonymous in the public eye with unethical behavior. Widespread scandals, massive layoffs, and inflated executive pay packages have led many to believe that corporate wrongdoing is the status quo. That's why it's more important than ever that those at the top mend relationships with customers, employees, and other stakeholders. Professor Gardner has spent many years studying the relationship between psychology and ethics at Harvard's Graduate School of Education. In this interview with HBR senior editor Bronwyn Fryer, Gardner talks about what he calls the ethical mind, which helps individuals aspire to do good work that matters to their colleagues, companies, and society in general. In an era when workers are overwhelmed by too much information and feel pressured to win at all costs, Gardner believes, it's easy to lose one's way. What's more, employees look to leaders for cues as to what's appropriate and what's not. So if you're a leader, what's the best way to stand up to ethical pressures and set a good example? First and foremost, says Gardner, you must believe that retaining an ethical compass is essential to the health of your organization. Then you must state your ethical beliefs and stick to them. You should also test yourself rigorously to make sure you're adhering to your values, take time to reflect on your beliefs, find multiple mentors who aren't afraid to speak truth to your power, and confront others' egregious behavior as soon as it arises. In the end, Gardner believes, the world hangs in the balance between right and wrong, good and bad, success and disaster. "You need to decide which side you're on:" he concludes, "and do the right thing."     

Critical thinking in the public accounting profession: aptitudes and attitudes

The public accounting profession has called for enhanced critical thinking skills in accounting graduates. However, critical thinking is a term which does not enjoy a universally-accepted definition. This study attempts to identify the critical thinking competencies essential to success in public accounting, and articulates those competencies to facilitate future research aimed at curricular change to meet the needs of the profession. The findings reveal that the profession uses the term critical thinking to refer to a broad set of competencies which includes both cognitive and non-cognitive attributes, attitudes, and behaviors. These competencies are presented as an operational definition of critical thinking useful to accounting education researchers.     

International competition and exchange rate shocks: a cross-country industry analysis of stock returns

This article systematically examines the importance of exchangerate movements and industry competition for stock returns. Commonshocks to industries across countries are more important thancompetitive shocks due to changes in exchange rates. Weeklyexchange rate shocks explain almost nothing of the relativeperformance of industries. Using returns measured over longerhorizons, the importance of exchange rate shocks increases slightlyand the importance of industry common shocks increases moresubstantially. Both industry and exchange rate shocks are moreimportant for industries that produce internationally tradedgoods, but the importance of these shocks is economically smallfor these industries as well.