A choice‐theoretic analysis of a corporate tax holiday versus a subsidy

This paper attempts to compare the effect of a corporate tax holiday with that of a subsidy on the behaviour of the individual firm. Assuming the subsidy equals the amount of tax paid by a firm operating under the subsidy system, we find that the firm's net profit will be greater under the tax holiday than under the subsidy regime. Similarly, if the subsidy exceeds the tax by an amount that would equalize the profits made by the (“marginal”) firm under the two regimes, then it is found that firms with higher than “average” unit costs would opt for the subsidy system; conversely, firms with a low cost structure would maximize profits by selecting the tax holiday. Finally, a multiperiod analysis of the particular choice facing prospective manufacturers in Ciskei, shows that the firm would normally choose the subsidy system except if the current tax exceeded the subsidy at the output level representing maximum profit under the tax holiday.     

An examination of gender stereotyping as an explanation for vertical job segregation in public accounting

Theorizing that sex-related stereotypes impede women's progression to leadership positions, this study tests the hypothesis that sex-role stereotypes negatively influence the evaluation of female accountants, thus reducing the upward mobility of women to partnerships in public accounting. Although the pro-male bias in our findings was less than robust, the study revealed instances where male managers devalued female managers who exhibited certain “masculine” leadership styles.     

Recent Developments in Credit Markets

We summarize recent developments in the credit derivative markets. We show the role of dependence between individual debtors in portfolio derivatives in a study of implied correlation. The risk of changing dependence structures between stock and bond markets becomes evident in an example of capital structure arbitrage. How credit derivatives can introduce new risks is illustrated by the example of “overlay” in basket derivatives.     

The oil price increase and the alleviation of poverty: Income distribution in Caracas,Venezuela, in 1966 and 1975

Two Caracas household budget surveys are used to compare household and individual income distributions. Real 1975 incomes are derived from income-specific price indexes. Minimum food budgets define destitution and poverty levels. During 1966–1975 mean real income rose substantially, especially among the rich. The fraction poor declined markedly, but mean income did not rise for those remaining poor. The poor's share of income growth came entirely from reduction in the number of poor, and exceeded their 1966 income share. The poverty gap expanded with population growth but shrank in per capita terms and relative to total income.     

A network model of economic growth: A regional analysis

In this paper we consider a linear model of economic growth in which production and consumption occur at specific sites represented by nodes, and commodities can be shipped from one node to another along arcs. It is shown that under fairly reasonable conditions a stationary optimal growth plan will exist and that it can be computed by means of Lemke's linear complementary algorithm.