Jobs versus amenities in the analysis of metropolitan migration

"This paper demonstrates that jobs and wages are considerably more important than location-specific amenities in explaining net metropolitan migration of employed persons [in the United States]. These results, which are derived mainly from a unique set of annual migration data, differ considerably from the earlier findings of P. E. Graves...that show amenities to be powerful contributors to the analysis of net metropolitan migration. Several hypotheses are offered and tested to explain the appreciable difference between Grave's results and those of the present study, but the importance of economic factors as opposed to amenities persists."     

Auditor Independence: A Nonparametric Test of Differences Across the Big‐5 Public Accounting Firms

This small sample study provides additional evidence on the unsettled question of auditor independence: Does the provision of non‐audit services by an auditor compromise independence resulting in a poor quality audit? We also examine whether these findings vary across the “Big‐5” public accounting firms. Most prior studies addressing this question, using parametric approaches and various measures of audit quality, have reported conflicting results. Contrary to these studies, we use a non‐parametric approach and the probability of GAAP violation as a new measure of audit quality to address this question. Using data from a sample of Fortune 500 companies for the year 2000, we find that firms whose auditors provide substantial non‐audit services tend to have a higher propensity to violate GAAP. At the firm‐level analysis, we find that these results are more likely driven by few of the Big‐5 public accounting firms. For the remaining firms, the association between non‐audit services and quality of audit could not be established, primarily because of small sample size and lack of power in the test. Our main finding is consistent with other recent studies that provide evidence that the rendering of significant non‐audit services by auditors creates conflict of interest resulting in poor quality audits. Furthermore, our result of differences in these levels of association among the Big‐5 accounting firms represents a new finding, and suggests that there is a need for controlling them separately in research studies examining auditor independence.     

Client importance and non-Big 5 auditors’ reporting decisions

In this paper, we examine the effect of the trade-off between economic dependence and reputation protection on the link between client size and the audit reporting decisions of non-Big 5 auditors. We find that non-Big 5 auditors, like Big 5 auditors, do not allow their larger clients greater leeway to manage earnings. In fact, there is some evidence that non-Big 5 auditors treat their larger clients more strictly. In addition, non-Big 5 auditors, like Big 5 auditors, are at least as likely to issue a going-concern report to their potentially financially distressed larger clients as they are to their otherwise smaller clients.     

Estimating visitors’ travel mode choices along the Bear Lake Road in Rocky Mountain National Park

The National Park Service (NPS) in the United States of America (USA) is looking to alternative transportation systems to provide visitors access to the national parks in a manner that potentially reduces traffic congestion, enhances visitors’ experiences, and more effectively protects park resources. However, shuttle bus systems without adequate planning and management may lead to unintended consequences such as eliminating the constraint to visitor use levels associated with parking lot capacities. As a consequence, the demand for recreation use in the area increases the potential impacts to the visitor experience and park resources. This study examined the trade-offs Rocky Mountain National Park visitors were willing to make about transportation mode choice using a stated choice survey to inform park managers about visitor acceptance of potential transportation related management actions. Results indicate that visitors prefer to use their private vehicles over the parks transit system but are willing to make trade-offs to ride the shuttle bus in order to avoid crowding along the trail at Bear Lake and vehicle traffic along the Bear Lake Road. In addition, there were statistically significant differences among choices of transportation mode trade-offs among different age groups (i.e., less than 40 years of age, 40–60 years of age, and more than 60 years of age) Specifically, results suggest that visitors less than 40 years are more willing than the older age groups to make trade-offs among transportation options to enhance their chances of being on the trail system at Bear Lake with fewer other people. The significant and interacted relationships with shuttle bus use, visitor use, and vehicle traffic levels found in this study provide RMNP managers opportunities to influence visitors’ transportation mode choices.     

Economic effects of immigrants on native and foreign-born workers: complementarity,substitutability, and other channels of influence

The authors use Standard Metropolitan Statistical Area (SMSA) data constructed from 1980 census microdata files and other sources to estimate a structural model of native/foreign-born labor demand and labor supply which distinguishes the effects upon real wages of each type of labor and on the employment of natives. The authors specify, econometrically estimate, and simulate the structural model which incorporates not only a production structure channel through which immigrants influence area real wages and employment, but also demand and native labor supply channels. It is noted that while these are not the only channels through which immigrants may affect native workers, the model nonetheless constitutes a step in the direction of a general equilibrium approach. In the production structure channel, immigrants and natives are found to be substitutes in production. Immigration lowers foreign-born wage rates and leads to lower wages for natives. The negative effects of the production channel usually are ameliorated through the demand channel. Further, immigrants add to local demand through their earnings and potentially through non-labor income, while also lowering unit costs and local prices which enhances real incomes and potentially net exports, and thus the demands for local output and area labor. The author discusses findings of interest from the simulation results based upon an analysis of all areas.