Option clauses and the stability of a laisser faire monetary system

This article examines the potential of option clauses to stabilize a banking system with multiple banks of issue and convertible banknotes. It suggests that under laisser faire, banks will introduce option clauses and the public will be willing to accept them even when fully convertible notes are also available. This will be in the interest of both parties since option clauses protect banks against a liquidity crisis. The article then examines the historical experience of option clauses in Scotland in 1730–1765 and finds it to be broadly consistent with our prior expectations.     

Social choice rules and real-valued representations

Under commonplace assumptions, it is shown that social choice rules can be given real-valued representations. The usefulness of this characterization is that the general structure of abstract choice rules can be analyzed by investigating the form of their representation and the particular structure of rules can be analyzed by examining the properties of functions that represent them. After the possibilities of representation have been fully analyzed, this is demonstrated with the use of several examples. The analysis suggests a useful technique for studying social choice rules.     

Residential Mortgage Markets and the Cost of Mortgage Funds

Early federal housing finance policy appears to have been largely directed at making mortgages more marketable. The creation of FHA, FNMA and FHLMC were designed to homogenize the mortgage instrument and to develop a secondary market for it. Apparently because of a lack of demand for marketability by investors, extensive trading of mortgages has not developed. Nonetheless, the fantastic growth in mortgage pools (as well as the unanticipated growth in FNMA holdings) has increased competition in the supplying of some intermediation functions (mortgage bankers have greatly expanded originations and servicing), has improved interregional flows of mortgage funds, and has given mortgage borrowers a greater access to capital markets generally. The principal result has been a decline in the mortgage rate relative to other market rates, although the inflation-triggered explosion in the demand for mortgage funds in recent years appears to be offsetting the impact of the growth in federal credit broadly defined.     

An analysis of dual-command operations in common warehouse designs

In a warehouse that uses dual-command operations, workers travel loaded from the pickup and deposit (P&D) point first to a location to store a pallet, then to a second location from which they pick a pallet and return to the P&D point. We develop expected travel distance expressions for such operations and use them to analyze three common warehouse designs. Our results indicate that the best of the three is – in our experience – the one least commonly found in practice. We also show that the optimal placement of a “middle cross aisle” in the most common design is, in fact, not in the middle.     

Devolution and Economic Governance in the UK: Uneven Geographies, Uneven Capacities?

Recent academic debates have suggested that the capacity of any given territory to embed increasingly global processes of economic development partly rests on sub-national social, cultural and institutional forms and supports. In this context, devolution has the potential to alter the institutional architecture of the UK state and this paper interrogates the various ways in which the devolved bodies in the four territories--England, Scotland, Northern Ireland and Wales--have begun to remake their institutional architectures of economic development. The paper also draws out some initial implications of these changes for the emerging uneven geographies and uneven capacities of economic development with the UK, post-devolution. The paper concludes by linking these observations to academic debates on the 'new regionalism'.     

Managerial Pay and Governance in American Nonprofits

This article examines the compensation of top managers of nonprofits in the United States using panel data from tax returns of the organizations from 1992 to 1996. Studying managers in nonprofits is particularly interesting given the difficulty in measuring performance. The article examines many areas commonly studied in the executive pay (within for-profit firms) literature. It explores pay differences between for-profit and nonprofit firms,pay variability within and across nonprofit industries, managerial pay and performance (including organization size and fund raising) in nonprofits, the effect of government grants on managerial pay, and the relationship between boards of directors and managerial pay in nonprofits.     

Exploring the business benefits of environmental stewardship

Environmental sensitivity has gained much attention in business organizations; however, there is little empirical evidence on the business benefits from environment-oriented measures. Some of the many promised benefits from environmental sensitivity are categorized and rated. The framework proposed by the Management Institute for Environment and Business is used to assess company environmental stewardship. A pre-tested questionnaire was used to collect data from 133 business organizations known to have undertaken at least some ‘green business’ activities. The results from Pearson correlation analysis suggest that companies showing higher degrees of environmental stewardship will derive greater business benefits than organizations which aim at minimum compliance with government regulations in this area.