A Note on Modelling Money Demand in Growing Economies

A prominent feature of US data is the lack of cointegration between nominal interest rates and M1 velocity. Yet, most general‐equilibrium monetary models that have been used for empirical analysis have imposed cointegration between these two series. This paper presents as an alternative a money‐in‐the‐utility function model which does not imply cointegration even though a well‐defined stationary monetary equilibrium exists.     

ESTIMATING PERSON‐CENTERED TREATMENT (PeT) EFFECTS USING INSTRUMENTAL VARIABLES: AN APPLICATION TO EVALUATING PROSTATE CANCER TREATMENTS

This paper builds on the methods of local instrumental variables developed by Heckman and Vytlacil (1999, 2001, 2005) to estimate person‐centered treatment (PeT) effects that are conditioned on the person's observed characteristics and averaged over the potential conditional distribution of unobserved characteristics that lead them to their observed treatment choices. PeT effects are more individualized than conditional treatment effects from a randomized setting with the same observed characteristics. PeT effects can be easily aggregated to construct any of the mean treatment effect parameters and, more importantly, are well suited to comprehend individual‐level treatment effect heterogeneity. The paper presents the theory behind PeT effects, and applies it to study the variation in individual‐level comparative effects of prostate cancer treatments on overall survival and costs. Copyright © 2013 John Wiley & Sons, Ltd.     

Government success,failure of the market: a case study of rural India

Contrary to current thinking, in this paper we argue that a careful examination of government intervention suggests that governments did not fail in all their interventions. For example, in terms of achieving self‐sufficiency in food requirements, Indian government intervention was highly successful. However, in terms of solving rural poverty, the government left it to the market, and the market failed to resolve the poverty problem. Rural poverty, instead of falling, increased and subsequently, the government had to intervene to address the poverty.     

Discussion of “Conditional and UnconditionalConservatism: Concepts and Modeling”

Beaver and Ryan (Beaver, W. H., Ryan S. G. (2005). Review of Accounting Studies 10: (2/3)) algebraically model, simulate and graph the effects of various factors on the nonlinear earnings-return relation induced by conditional conservatism. Their analysis clarifies how conditional and unconditional conservatism are inter-related. I discuss why unconditional and conditional conservatism are more than mere substitutes, and provide evidence from the historical record. I then highlight a few areas for future modeling, before moving on to discuss potential empirical tests of their predicted relations. I identify some research questions and opportunities for future investigation.This revised version was published online in August 2005 with a corrected cover date.     

Trends in corporate diversification

This paper studies the diversification and refocusing strategies of firms in the last three decades. The 1980s were characterized by a trend towards greater focus. This trend slackens in the 1990s to be replaced by a surge in the number of newly listed single-segment firms. From 2000 to 2007 there is very little change in the proportion of diversified firms. Overall, the proportion of conglomerates declines from 40% to 17% from 1980 to 1997. In addition, about one third of the diversifying firms reverse the diversification decision within four years. The analysis of the statements made by these firms suggests that there is significant heterogeneity in the motivations behind diversification.     

Learning to learn in the accounting Principles course: Outcome assessment of an integrative business analysis project

This paper reports on an effort to integrate some of the Accounting Education Change Commission's recommendations for the Principles course. A project involving comprehensive analysis of a publicly traded company was introduced in the Managerial Accounting course as a vehicle to develop critical thinking, problem solving, ethical sensitivity, team-work, and communication skills among sophomore-level business majors. As a means of assessing outcomes, a follow-up questionnaire was administered to measure the effectiveness of the project, and results were analyzed. The project was found to have made positive impacts across several dimensions of the learning process. Implications for Accounting curricula are discussed.     

Label performance and the willingness to pay for Fair Trade coffee: a cross‐national perspective

In this paper, we investigate how label information detailing the performance of the Fair Trade labelling programme with respect to coffee affect consumers' willingness to pay in the US and in Germany. We provide respondents (university students in the US and Germany) information regarding the hypothetical benefits of the Fair Trade coffee programme on its intended beneficiaries on the production side [the revenue gains to participating marginal farmers (scope of the programme)] and, using stated preference conjoint methods, test how this performance criterion relates to the willingness to pay for Fair Trade coffee. Our empirical results identify a ‘threshold’ property of performance‐based labels. In effect, the willingness‐to‐pay for performance‐based Fair Trade labelled coffee exhibits an inverted U shape in the sense that the willingness to pay is positively related to the scope of the programme, but only up to a critical level. Thereafter, the willingness to pay declines as the income gains to participating growers increase further. Interestingly, this inverted U property is exhibited by both the US and German respondents with different critical thresholds.